Public Hearing on Draft RTS Amending RTS on Own Funds and Eligible Liabilities

The European Banking Authority will hold a public hearing on September 2 to discuss proposed amendments to the EU Delegated Regulation on own funds and eligible liabilities. The hearing will be conducted via conference call, with registration required by August 28 at 16:00 CEST.

Consultation Background

The EBA launched this public consultation on July 9, proposing to shorten the processing timeframe for applications to reduce own funds and eligible liabilities instruments under the Capital Requirements Regulation from four months to three months. This change aims to simplify processes and provide institutions with greater capital planning flexibility.

The four-month timeframe was established in 2021 to accommodate complex assessments, but industry stakeholders considered it excessive. Based on implementation monitoring, the EBA determined that competent and resolution authorities have gained sufficient experience to process applications more efficiently. The consultation also removes the simplified procedure for MREL eligible liabilities reduction for liquidation entities.

Hearing Details

This public hearing provides stakeholders with an opportunity to discuss the proposed regulatory changes and their practical implications for financial institutions. The consultation period remains open until October 9, allowing participants to submit detailed comments following the hearing session.

Registration for the conference call is mandatory and must be completed through the EBA's consultation page by the August 28 deadline. All consultation responses will be published after the consultation closes unless confidentiality is specifically requested.