European Banking Authority initiates consultations on new regulatory frameworks

The European Banking Authority (EBA) has launched public consultations regarding two distinct regulatory initiatives in late August 2026. The first initiative concerns three draft Regulatory Technical Standards (RTS) for the reclassification of investment firms as credit institutions. This requirement is triggered when an investment firm's total assets exceed the threshold of 30 billion euros, subjecting them to stricter banking supervision standards.

In a parallel development, the EBA initiated a consultation process focused on draft RTS that specify a more flexible framework for operational risk management for smaller banking institutions. This initiative aims to refine how financial entities monitor and mitigate operational risks within the European banking sector. Both consultations are part of an ongoing effort to ensure regulatory alignment across the European Union.

The consultation processes are scheduled to run until the end of 2026. These measures are intended to harmonize the supervisory approach, ensuring that firms exceeding significant asset thresholds are regulated appropriately, while smaller institutions benefit from a streamlined risk management structure. Interested parties are invited to participate in the public dialogue to finalize these technical standards before their formal adoption.