- within Insolvency/Bankruptcy/Re-Structuring, Criminal Law and Law Department Performance topic(s)
1. Bank regulation
1.1 PRUDENTIAL REGULATION
a) General
(i) EU
ESAs: Joint Committee Update on risks and vulnerabilities in the EU financial system as of Spring 2026
Status: Final
The ESAs published their spring 2026 Joint Committee update on risks and vulnerabilities in the EU financial system. The update focuses on the challenges arising from ongoing geopolitical tensions and developments in private finance. It also takes into account the overall resilience of the EU financial sector and calls for continued vigilance by supervisors and market participants in light of the ongoing tensions.
Date of publication: 27/03/2026
EBA: Risk dashboard for Q4 2025
Status: Final
The EBA published its Q4 2025 Risk Dashboard (RDB), confirming that the EU/EEA banking sector remains robust with strong capitalisation, ample liquidity and solid asset quality, even as global economic uncertainty rises following renewed conflict in the Middle East. For the first time, the RDB is published alongside the new CRR3/CRD6 dashboard, which replaces the former Basel 3 monitoring Report.
Date of publication: 23/03/2026
EC: Report on crisis preparedness in the EU financial sector
Status: Final
The EC published a report issued to the Council of the EU and the EP, assessing the level of crisis preparedness of the EU financial sector in light of increasing geopolitical, cyber, climate and operational risks. The report states that the sector benefits from a robust, multi-layered preparedness framework underpinned by sector specific legislation (including CRR/CRD, Solvency II, MiFID II, EMIR and CSDR), with particular emphasis on the DORA alongside strong supervisory and crisis management arrangements at EU and national level.
It highlights the role of operational resilience, ICT and cyber risk management, business continuity planning, stress testing and supervisory coordination in ensuring the continuity of critical financial services, including payments and market infrastructure, during periods of crises. While noting the sector’s resilience during recent shocks, the EC emphasises that preparedness must be subject to ongoing assessment. Further resilience is expected to be supported by initiatives such as the Savings and Investments Union and the proposed digital euro. In general, the EC notes that preparedness is not static; it is a dynamic, forward-looking state requiring a continuous cycle of planning, training, equipping, testing, evaluating and improving. It involves anticipating risks, building capabilities, coordinating across sectors and learning from past events to strengthen resilience, all of which the EC states apply equally to the financial sector.
Date of publication: 10/03/2026
(ii) International
BCBS: Basel III monitoring report
Status: Final
BCBS published its latest version of the Basel III monitoring report. The report sets out the impact of the Basel III framework, including the December 2017 finalisation of the Basel III reforms and the January 2019 finalisation of the market risk framework. A web-based version of the report with interactive graphs is available on the highlights page.
Date of publication: 24/03/2026
BCBS: Finalisation of technical amendment and FAQ regarding the Basel framework
Status: Final
BCBS published a document containing a finalised technical amendment (TA) and a response to a frequently asked question (FAQ) to help promote the consistent global interpretation of the Basel framework. The TA relates to the standardised approach to operational risk. It clarifies the treatment of “rental income from investment properties” under the business indicator, which is used as a key input in calculating operational risk capital requirements. The TA was originally consulted on in June 2025 and, following feedback, it now incorporates similar changes to the treatment of “interest expenses”. The BCBS has agreed to implement the final revised standard by 1 April 2029. The amended text has also been incorporated into the consolidated Basel framework.
In addition, the document also includes a finalised response to an FAQ on market risk and consequential amendments to related FAQs. These have also been added to the Basel framework.
Date of publication: 23/03/2026
b) Solvency/Own funds issues
(i) EU
Status: FinalThe EBA published a final report on its draft RTS on material model changes. It introduces targeted amendments that significantly reduce the number of changes classified as material, allowing supervisors to apply a more risk‑based approach in the supervision of Internal Ratings Based (IRB) models. This amendment aims to align the existing RTS with the changes brought in by the CRR 3, and to introduce amendments to enhance the supervisory effectiveness of the approval process for model changes. It will ease the administrative burden on both banks and supervisors while maintaining appropriate supervisory oversight.
Date of publication: 30/03/2026
Status: Adopted by the EC
The EC adopted a Delegated Regulation amending the RTS set out in Delegated Regulation (EU) 2023/206. The Amending Regulation is technical in nature and updates the RTS to ensure consistency with changes introduced to the CRR by Regulation (EU) 2024/1623 (CRR3). In particular, the amendments: (i) align the references to Article 124 CRR, which have become obsolete following the renumbering and revisions introduced by CRR3 concerning preferential risk weights for exposures secured by immovable property under the Standardised Approach; and (ii) reflect the updated terminology in Article 164 CRR, which now refers to the ability of an authority designated under Article 164(5) to set loss given default (LGD) input floor values, rather than higher minimum LGD values, for exposures located in one or more parts of its territory under the Internal Ratings Based Approach.
The Delegated Regulation is based on final draft RTS developed by the EBA and published in December 2025. It will enter into force 20 days after its publication in the OJ and will be directly applicable in all member states.
Date of publication: 10/03/2026
Status: Final
Date of application: 11/01/2027
The EBA published its final Guidelines on instruments available for third-country branches (TCBs) for unrestricted and immediate use to cover risks or losses under Article 48e(2)(c) CRD IV. Under Article 48e of the CRD IV Directive, as amended by CRD VI, an authorised TCB must maintain a minimum capital endowment at all times. Article 48e(2)(c) specifies that it may use for this purpose instruments that are available to the TCB for unrestricted and immediate use to cover risks or losses as soon as those occur. The EBA was mandated to issue Guidelines on the instruments that can be used for this purpose.
Further to its July 2025 consultation, the EBA does not indicate any substantive changes from the initial draft Guidelines apart from minor clarifications. The Guidelines, as consulted on, specify that, in addition to cash and certain government debt already listed in the CRD IV, the most suitable financial instruments for the purposes of Article 48e(2)(c) are debt securities that would receive a 0% risk weight under the standardised approach for credit risk under CRR and that are issued or guaranteed by central, regional or local governments, or central banks, public sector entities, multilateral development banks or international organisations. In addition, to ensure that these other instruments are available for use for the purposes of Article 96 BRRD in the case of resolution of the TCB and for the purposes of the winding-up of the TCB, the Guidelines also specify the minimum operational conditions that third-country branches should respect. The Guidelines will now be translated into the official EU languages and published on the EBA website. The deadline for competent authorities to report whether they comply with the Guidelines will be two months after the publication of the translations.
Date of publication: 02/03/2026
c) Cyber security
(i) EU
EC: Report on crisis preparedness in the EU financial sector
Status: Final
The EC published a report issued to the Council of the EU and the EP, assessing the level of crisis preparedness of the EU financial sector in light of increasing geopolitical, cyber, climate and operational risks. For more information, please see section 1.1a) above.
Date of publication: 10/03/2026
d) Supervisory reporting
(i) EU
Status: Final
The EBA published its final report with final draft ITS on the supervisory reporting of third-country branches (TCBs) under CRD VI. Under the new framework introduced by CRD VI, TCBs will be required to submit two sets of reports covering TCB-level financial and regulatory information and head-undertaking-level quantitative and qualitative data. A key feature of the draft ITS is a proportionate “core and supplement” model, which tailors reporting requirements to the systemic relevance of each TCB. This means smaller and less complex branches are required to submit a core set of key data while larger and more complex branches report on additional details.
Following feedback to the July 2025 consultation, the EBA makes several changes to the draft ITS to improve clarity, proportionality and operational feasibility. Key changes include: (i) postponing the initial reporting date to 31 March 2027; (ii) extending remittance deadlines; (iii) revising certain head-undertaking provisions; and (iv) streamlining templates by reducing duplication, simplifying instructions and narrowing scope. Practical guidance and examples have also been added to support implementation. Following the report’s submission to the European Commission for adoption, the EBA will develop the data point model, XBRL taxonomy and validation rules based on the final draft ITS. This technical package will be published as a draft in Q1, while the final technical package is expected to be published in Q2. The first reference date for the application of this ITS is expected to be 31 March 2027. The reporting templates are included in the relevant annexes which accompany the final report and can be found on the EBA’s press release.
Date of publication: 05/03/2026
e) Disclosure
(i) EU
Status: Published in the OJ
Date of entry into force: 16/04/2026
The Commission Implementing Regulation (EU) 2026/722 amending the ITS laid down in Implementing Regulation (EU) 2024/3172 as regards the implementation and use by institutions, other than small and non-complex institutions, of the EBA single access point for their disclosures was published in the OJ. The Implementing Regulation aims to provide institutions with a comprehensive integrated set of uniform disclosure formats.
Date of publication: 27/03/2026
f) Accounting/Prudential filter/Audit
(i) International
IOSCO: Statement on non-GAAP financial measures
Status: Final
The IOSCO updated its statement on non-GAAP (Generally Accepted Accounting Principles) financial measures. This Statement is intended to assist issuers in providing clear and useful disclosure for investors and other users of non-GAAP financial measures, and to help reduce the risk that such measures are presented in a way that could be misleading. It highlights IOSCO’s commitment to clear, useful and standardised disclosures to reduce risks for investors and other users of financial information.
Date of publication: 17/03/2026
1.2 RECOVERY AND RESOLUTION
(i) EU
EP: Adoption of the CMDI proposals
Status: Final
The EP published a press release announcing that it has adopted the legislative package to reform the crisis management and deposit insurance (CMDI) framework for banks in the EU. The package includes targeted amendments to the Bank Recovery and Resolution Directive (BRRD), the Single Resolution Mechanism Regulation (SRM), and the Deposit Guarantee Schemes Directive (DGSD). The European Parliament has also published the following legislative resolutions: (i) a legislative resolution on the Council position at first reading with a view to the adoption of a Directive amending the DGSD as regards the scope of deposit protection, use of deposit guarantee schemes funds, cross-border co-operation, and transparency; (ii) a legislative resolution on the Council position at first reading with a view to the adoption of a Directive amending the BRRD, as regards early intervention measures, conditions for resolution and funding of resolution action, and Directive 2014/24/EU, as regards valuation services in resolution; and (iii) a legislative resolution on the Council position at first reading with a view to the adoption of a Regulation amending the SRM Regulation as regards early intervention measures, conditions for resolution and funding of resolution action.
The Council of the EU adopted at first reading its positions on the CMDI proposals on 6 March. The new rules will enter into force on the twentieth day following their publication in the OJ and will apply (with some exceptions) from 24 months after they enter into force.
Date of publication: 26/03/2026
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