EU & UK Reg Roundup 16/6/26
European Banking Authority
The EBA proposes simplifications to the EU bank capital framework in a holistic manner to strengthen its efficiency
16 June 2026
The EBA has proposed a comprehensive simplification of the EU bank capital framework aimed at reducing regulatory complexity while fully preserving the banking system's resilience and resolvability. It recommends streamlining the microprudential stack by clarifying the roles of Pillar 1 and 2 requirements, removing macroprudential overlaps, and simplifying the leverage ratio. For the macroprudential stack, the proposal suggests combining the countercyclical and systemic risk buffers into a single releasable buffer and updating the O-SII framework. Additionally, the resolution stack would see MREL and TLAC definitions aligned to reduce operational complexity.
Link
The EBA launches Discussion Paper on Pillar 3 Data Hub for small banks
8 June 2026
The EBA has launched a Discussion Paper proposing a streamlined Pillar 3 disclosure process designed to significantly reduce the operational burden on Small and Non-Complex Institutions (SNCIs). Under this simplified approach, the EBA would take over the responsibility of calculating and publishing Pillar 3 disclosures on behalf of these smaller banks, utilizing the supervisory reporting data they already submit. By integrating SNCIs into the centralized Pillar 3 Data Hub, which went live for larger institutions in January 2026, the EBA aims to create a single access point that enhances data transparency, comparability, and accessibility across the banking sector.
Bank of England / Prudential Regulation Authority
Changes to collateral eligibility in the Sterling Monetary Framework - Market Notice
11 June 2026
The BOE has issued a Market Notice detailing updates to the Sterling Monetary Framework's (SMF) collateral eligibility. Effective June 19, 2026, the Bank is expanding Level B collateral to include high-quality government-linked debt from G10 and Australian regional governments and development banks, while also introducing separate, more granular haircut schedules for index-linked sovereign debt. Further changes, effective October 31, 2026, will classify all eligible corporate bonds solely as Level B collateral, revise their haircut calculation methodology to include add-ons for climate transition risks, and strictly exclude bonds from issuers deriving revenue from thermal coal mining.