EBA responds to Commission’s proposed amendments to operational risk standards

The European Banking Authority (EBA) published an opinion regarding the European Commission’s proposed amendments to the final draft Regulatory Technical Standards (RTS) on operational risk under the Capital Requirements Regulation (CRR).

The Commission informed the EBA on March 2, 2026, of its intention to endorse the draft RTS with amendments, which the EBA reviewed and responded to.

The EBA expressed concern that two proposed amendments could impact the consistency, transparency, and supervisory effectiveness of capital requirements for operational risk.

Firstly, the Commission proposes to allow the combined use of the accounting approach (AA) and the prudential boundary approach (PBA) for calculating the financial component of the business indicator. The EBA recommends applying only one approach to maintain framework coherence, citing increased complexity and potential regulatory arbitrage as risks.

Secondly, the Commission proposes limiting notification obligations to competent authorities for material changes in the scope of the PBA when used with the AA. The EBA considers this could weaken supervisory effectiveness by complicating oversight due to institution-specific materiality judgments.

The EBA supports other amendments that enhance readability and legal certainty.

This opinion is issued under Article 10(1) of Regulation (EU) No 1093/2010, which mandates the EBA to provide opinions on draft RTS with amendments endorsed by the European Commission.

The prudential treatment of operational risk is governed by Articles 311a to 323 of Regulation (EU) No 575/2013 (CRR). The RTS specify components of the business indicator, profit and loss adjustments, and a harmonized risk taxonomy for operational risk.