Public Hearing on Technical Standards on Prudentially Material Transactions under CRD

Banking Sector Material Transaction Standards

The European Banking Authority will hold a public hearing to discuss draft Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS) concerning material acquisitions, material transfers of assets or liabilities, and mergers and divisions involving credit institutions or (mixed) financial holding companies under the Capital Requirements Directive. The public consultation, launched by the EBA, runs until March 5, 2026, with the hearing providing stakeholders an opportunity to discuss the proposed standards designed to support banking consolidation and deepen EU market integration.

Consultation Focus

The draft standards aim to clarify supervisory expectations, reduce regulatory uncertainty, and ensure consistent prudential assessment across the EU for material transactions. The draft RTS lay down required elements for notifications, outline assessment methodology, and detail applicable processes for material transactions. The draft ITS establish clear procedures for cooperation among authorities supervising entities involved in material acquisitions, mergers, or divisions.

Proportionality and Efficiency

The standards embed proportionality through multiple mechanisms: exempting information already held by Competent Authorities, leveraging documents prepared for mergers or divisions under the Company Law Directive, ensuring efficient coordination with other procedures such as credit institution authorization where mergers require new licenses, and providing regulatory flexibility for divisions considering their infrequent nature.

Regarding mergers and divisions, in the absence of materiality threshold in the CRD, the draft RTS introduce proportionality criteria for notification content and related assessments, particularly for mergers involving small and non-complex institutions or intra-group entities sharing integration levels that facilitate smoother merger implementation.

Regulatory Framework

Considering similarities among material operations, the draft RTS build on common information requirements and terminology, clarifying complex aspects and supplementing Level 1 provisions. This approach promotes consistency while reducing regulatory burden through standardized processes and clear expectations for transactions affecting the EU banking sector's structure.

What to Expect

This public hearing enables stakeholders to engage with EBA staff on the practical implications of proposed standards for material banking transactions. Participants can discuss notification requirements, assessment methodologies, supervisory cooperation procedures, and proportionality mechanisms designed to facilitate banking consolidation while maintaining prudential oversight. The hearing provides opportunities to clarify implementation expectations and address stakeholder concerns regarding the draft technical standards before finalization.