EU & UK Reg Roundup: 24/4/2026
European Banking Authority (EBA)
EU banking sector enters period of geopolitical uncertainty from a position of strength
23 March 2026
Publishing its Q4 2025 Risk Dashboard, the EBA reported that EU/EEA banks entered a period of geopolitical uncertainty with strong capitalisation and liquidity. The dashboard showed the average fully loaded CET1 ratio remained robust at 15.6 %, return on equity was 8.9 % in 2025, and the non-performing loan ratio hit a record low of 1.7 %. Banks’ direct exposures to the Middle East were limited, although sovereign exposures to the US were high. The EBA noted that capital buffers and liquidity coverage ratios were well above regulatory minima, and profitability increased despite rising funding costs. The EBA also introduced a new CRR 3/CRD 6 dashboard to monitor the implementation of upcoming Basel III reforms.
Final draft amending RTS to shorten prior-permission timeline for reductions in own funds
19 March 2026
The EBA issued final draft amendments to the Regulatory Technical Standards on own funds and eligible liabilities. The changes shorten the maximum time authorities may take to decide on banks’ requests to redeem or repurchase instruments qualifying as own funds or eligible liabilities from four months to three months, reflecting supervisors’ greater experience with these reductions. The EBA said the adjustments reduce regulatory burden while preserving prudential safeguards and align the framework with recent legislative developments.
The EBA issues revised list of ITS validation rules
17 March 2026
The European Banking Authority (EBA) issued today an updated list of validation rules under its Implementing Technical Standards (ITS) on supervisory reporting. The revised package identifies rules that (i) have been deactivated due to inaccuracies or IT-related issues, (ii) have been reactivated, or (iii) have undergone a severity status change.
In addition, the EBA has released a small validation rules package, which includes:
- a micro taxonomy package and
- Data Point Model (DPM) validation rules updates scripts.
LinkConsultation on regulatory products for Initial Margin Model Authorisation
17 March 2026
The EBA launched a consultation on draft Guidelines and draft RTS for Initial Margin Model Authorisation (IMMA) under EMIR 3. The proposals describe the information firms must provide when seeking authorisation to use their own initial margin models for non-centrally-cleared derivatives and set out how authorities should assess these applications. The rules include requirements for large groups whose aggregated notional amount exceeds €750 billion, specify the use of pro-forma models and sensitivity analysis, and aim to ensure harmonised and rigorous authorisation processes. Stakeholders have until 17 June 2026 to comment.
European Securities and Markets Authority (ESMA)
Consultation on simplifying guidelines for delayed disclosure of inside information
19 March 2026
ESMA launched a consultation on amendments to its Guidelines on delay in disclosure of inside information under the Market Abuse Regulation. The consultation proposes to simplify the examples of legitimate interests that may justify delaying disclosure and to remove outdated provisions. The changes seek to align the guidelines with the EU Listing Act and reduce complexity.
Statement supporting smooth implementation of the Listing Act
18 March 2026
ESMA published a statement to help national competent authorities and market participants transition to the EU Listing Act. The statement explains how registration documents approved under the existing Prospectus Regulation should be treated after the Listing Act takes effect and provides guidance on transitional arrangements for follow-on and growth issuance prospectuses. ESMA aims to ensure consistent application and reduce legal uncertainty during the shift to the new regime.
Actions to simplify the retail investor journey
12 March 2026
Following a call for evidence in 2025, ESMA published a report on actions to make retail investing more accessible. The report highlights the need to simplify disclosure documents, reduce information overload, streamline suitability and appropriateness assessments, and simplify sustainability-preference requirements. ESMA emphasised consumer testing and cooperation with national authorities and stakeholders to improve the retail investor experience.
EU financial markets enter 2026 amid high-risk environment
11 March 2026
ESMA’s first Risk Monitoring Report of 2026 warned that markets face high risks due to geopolitical tensions, elevated equity valuations and uncertain economic outlook. ESMA observed increased price correlations that raise contagion risks and noted that cyber threats and market volatility remain elevated. The report urges market participants to maintain disciplined risk management and underlines that the risk outlook remains skewed to the downside.
Deutsche Bundesbank
German balance of payments for January 2026
13 March 2026
The Bundesbank reported that Germany’s current account surplus was €17.1 billion in January 2026, down from December 2025. The goods account surplus increased due to higher receipts and lower expenditure, while the surplus in primary income declined because of lower portfolio investment income. Invisible transactions (services and secondary income) recorded a deficit, mainly from high payments. On the financial account, Germany recorded net capital imports as residents increased foreign liabilities through trade credits and portfolio investments.
Bundesbank’s Central Office to move to a new location
11 March 2026
The Bundesbank’s Executive Board decided to purchase a property in Frankfurt am Main to serve as its future Central Office. According to the press release (not fully available in the citation), the decision followed a cost-efficiency analysis and aims to consolidate the bank’s central functions in a modern facility. Further details on timing and location were not provided.
BaFin (Federal Financial Supervisory Authority, Germany)
Fine against a.i.s. AG for delayed half-yearly report
23 March 2026
BaFin fined a.i.s. AG €112,000 for not publishing its 2024 half-year financial report within the prescribed timeframe. BaFin noted that the issuer had already missed publication deadlines in the past and stressed the importance of timely reporting to protect investors.
Fine against aap Implantate AG for delayed financial reporting
18 March 2026
BaFin imposed an administrative fine of €176,400 on aap Implantate AG for failing to publish its annual financial report and the non-financial statement for fiscal year 2023 and the 2024 half-year financial report within the statutory deadlines. BaFin reiterated that issuers must comply with financial reporting obligations to ensure market transparency.
Bank of England / Prudential Regulation Authority (PRA)
Policy statement on operational incident and third-party reporting (PS7/26) and supervisory statement SS1/26
18 March 2026
The PRA published PS7/26 and accompanying SS1/26, finalising new rules and expectations for operational incident reporting and notification of material third-party arrangements. The policy will require banks, building societies, PRA-designated investment firms and insurers to report material operational incidents and provide information on critical third-party arrangements. The PRA plans to align reporting templates with those of the Financial Conduct Authority and the Bank of England and excludes small credit unions from the rules. SS1/26 sets supervisory expectations and takes effect from 18 March 2027.
Consultation on modernising the liquidity policy framework (CP5/26)
17 March 2026
The PRA released CP5/26 proposing targeted reforms to modernise the UK’s prudential liquidity framework. The consultation responds to lessons from recent liquidity stresses and digital banking developments, including the 2023 Silicon Valley Bank collapse. Proposals include enhancing stress-testing requirements, updating firms’ use of liquid asset buffers, clarifying treatment of central bank facilities and collateral, and ensuring proportionality for smaller firms. The aim is to strengthen firms’ resilience while removing obsolete rules.
HM Treasury (United Kingdom)
Government to improve support for affordable debt repayments
20 March 2026
The UK government released its Debt Management Strategy 2026-2030, pledging to use better data and early engagement to help individuals repay government debt in an affordable way while tackling fraud. The strategy aims to prevent people falling into arrears, resolve existing debts fairly and improve departmental skills and technology. HMT said repayment plans will be tailored to individual circumstances and emphasised a firm approach to fraud and non-payment.