EU & UK Reg Roundup 30/06/26

European Banking Authority

The EBA publishes a roadmap on the delivery of its mandates under the revised Deposit Guarantee Schemes Directive

29 June 2026

The European Banking Authority (EBA) has published a roadmap setting out how it will implement its mandates under the revised Deposit Guarantee Schemes Directive (DGSD3), outlining the regulatory products and implementation timeline ahead of the Directive's application in May 2028.

Key points include:

• The EBA will develop 12 regulatory products, including technical standards and guidelines, over the next three years.
• The roadmap supports the implementation of DGSD3, which introduces over 100 operational improvements to strengthen depositor protection across the EU.
• The planned measures aim to improve depositor information, enable faster payouts in domestic and cross-border bank failures, strengthen cooperation between deposit guarantee schemes and authorities, and enhance stress-testing frameworks.
• The roadmap provides stakeholders with greater clarity on the sequencing of the EBA's work and supports the EU's broader bank crisis management and financial stability objectives.

Roadmap on the delivery of the DGSD mandates.

The EBA updates validation rules for supervisory reporting

26 June 2026

The European Banking Authority (EBA) has published its quarterly update to the validation rules used in supervisory reporting, including changes to validation rules, taxonomy packages and the Data Point Model (DPM).

Key updates include:

• Publication of an updated list of deactivated, reactivated and amended validation rules across the EBA reporting frameworks.
• Confirmation that Competent Authorities should not formally validate submissions against deactivated rules.
• Release of a micro taxonomy package and DPM validation rule update scripts to support implementation from release 4.0 onwards.
• Validation rules are now embedded directly into the taxonomy and DPM under DPM 2.0, improving consistency, traceability and the efficiency of supervisory reporting.
• The changes form part of the EBA's regular quarterly review process to maintain the quality and consistency of regulatory reporting.

The EBA updates Pillar 3 disclosure requirements on ESG risks, equity and shadow banking exposures as part of simplification effort

22 June 2026

The European Banking Authority (EBA) has published its final draft Implementing Technical Standards (ITS) updating the Pillar 3 disclosure framework under the Capital Requirements Regulation (CRR3), introducing new disclosure requirements while simplifying existing reporting obligations.

Key changes include:

• Updated ESG disclosures aligned with CRR3, alongside new disclosure requirements for equity and shadow banking exposures.
• A proportionate "core plus supplement" approach, reducing reporting requirements based on institutions' size and complexity.
• Large institutions will disclose 37% fewer data points, medium-sized institutions 17% fewer, while Small and Non-Complex Institutions (SNCIs) will disclose 84% fewer data points than large institutions.
• Alignment with the European Sustainability Reporting Standards (ESRS) to improve consistency and reduce duplication across sustainability reporting frameworks.
• The EBA will centrally pre-fill ESG information for SNCIs through the Pillar 3 Data Hub using supervisory reporting data.

Next steps:

• The ITS will be submitted to the European Commission for adoption.
• The framework is expected to apply from 31 December 2026, with implementation for SNCIs deferred until 31 December 2027.

Final report on Draft ITS on amended disclosure requirements for ESG risks, equity exposures and aggregate exposure to shadow banking entities

Latest EBA MREL dashboard highlights banks' progress in meeting resolution requirements

22 June 2026

The European Banking Authority (EBA) has published its latest semi-annual Minimum Requirement for Own Funds and Eligible Liabilities (MREL) dashboard, providing an overview of resolution planning across 303 EU banks.

Key findings include:

• MREL requirements range from 24.6% to 28.9% of risk-weighted assets (RWAs), depending on the bank category.
• Bail-in remains the preferred resolution strategy, accounting for 94% of RWAs, while transfer strategies continue to be used more frequently for smaller banks.
• Banks continue to meet MREL primarily through own funds, supplemented by senior non-preferred and senior unsecured debt.
• Around EUR 231 billion of eligible MREL instruments will require refinancing by the end of 2026 as they become ineligible due to their remaining maturity.
• This is the first dashboard published under the new semi-annual MREL reporting framework, introduced through revised Implementing Technical Standards (ITS).

The EBA publishes its annual assessment of banks’ internal approaches for capital requirements calculation

18 June 2026

The European Banking Authority (EBA) has published its 2025 market and credit risk benchmarking reports, finding continued improvements in the consistency and comparability of banks' internal models while identifying areas that will require supervisory attention ahead of the implementation of key regulatory reforms.

For market risk, the EBA reported improved data quality and greater convergence across banks under both the Internal Model Approach (IMA) and the Alternative Standardised Approach (ASA). Value-at-Risk (VaR) results remained stable, although higher variability persists for stressed VaR (sVaR), Incremental Risk Charge (IRC) and certain commodity portfolios. The ASA continued to demonstrate increased consistency, with the Sensitivities-Based Method (SBM) showing reduced dispersion. For credit risk, the exercise showed a gradual reduction in the variability of Probability of Default (PD) estimates across several asset classes, while Loss Given Default (LGD) estimates remained broadly stable. The EBA also noted continued progress in the implementation of its Internal Ratings Based (IRB) roadmap, reflected in an increase in approved model changes and a continued decline in IRB exposures.

Report results from the 2025 market risk benchmarking exercise - IMAReport results from the 2025 market risk benchmarking exercise - ASAReport results from the 2025 credit risk benchmarking exercise


Bank of England

The PRA consults on final Basel 3.1 market risk internal model approach rules

19 June 2026

The Prudential Regulation Authority (PRA) has launched a consultation on the Internal Model Approach (IMA) for market risk, completing the final element of the UK's Basel 3.1 implementation.

Key proposals include:

• Extending the profit and loss attribution (PLA) test monitoring period from one year to three years to allow further calibration before it affects capital requirements.
• Introducing a more targeted approach for non-modellable risk factors, allowing greater use of internal models where appropriate.
• Reducing barriers for firms transitioning from the standardised approach to the Internal Model Approach, helping avoid unnecessary increases in capital requirements during implementation.
• Introducing a range of operational simplifications to improve proportionality and support international alignment.

Next steps:

• The consultation represents the final component of the UK's Basel 3.1 reforms.
• The PRA intends to implement the revised IMA framework from 1 January 2028, while all other Basel 3.1 rules remain scheduled to come into force on 1 January 2027.

Please see the consultation paper

Implementation of Basel 3.1: Final rules