EBA launches consultation on simplifying the credit risk framework

The European Banking Authority (EBA) has launched a public consultation on its Discussion Paper regarding the simplification and assessment of the credit risk framework. The paper presents preliminary ideas to improve the usability, efficiency, and simplicity of the framework, encouraging broader discussion on future EBA work in this area.

The consultation runs until 10 May 2026. Comments can be submitted via the consultation page by clicking the “Send your comments” button. All contributions will be published after the consultation closes unless confidentiality is requested.

The EBA’s 2025 Report on regulatory and supervisory framework efficiency recommends reviewing all regulatory products related to the Single Rulebook, starting with credit risk. The discussion paper proposes a systematic review of mandates to support a more efficient and coherent framework, especially given the large number of mandates under the EU Banking Package.

The paper outlines concrete proposals to enhance the credit risk framework, balancing objectives such as risk sensitivity, comparability, and cost efficiency. It also suggests consolidating EBA products and aligning key definitions to improve clarity and navigation. The document highlights challenges linked to specific mandates and proposes measures for future reports assessing elements of the Capital Requirements Regulation (CRR).

Background information includes the December 2023 EBA roadmap on implementing the EU Banking Package and the opportunity to update existing products for greater consistency and efficiency. The review aims to streamline the credit risk framework and support future policy development.