The European Banking Authority (EBA) has opened a public consultation on proposals to simplify and review parts of the EU’s credit risk rules for banks, with responses due by 10 May 2026.
The consultation centres on a Discussion Paper that sets out early ideas for making the credit risk framework easier to use and more efficient, and for shaping the EBA’s future work in the area, the authority announced on Monday.
Credit risk refers to the chance that a borrower will not repay a loan, and banks must follow EU rules on how they measure and manage that risk.
The EBA said its 2025 report on the efficiency of the regulatory and supervisory framework recommended a review of the regulatory products it has developed since it was set up, starting with credit risk.
That report called for reviewing “Level 2 and Level 3” products — a reference to detailed standards and guidance that sit underneath EU legislation — linked to the Single Rulebook.
What the paper covers
The Discussion Paper includes proposals within the scope of the EBA’s existing credit risk mandates, and notes that any framework has to balance factors including risk-sensitivity, comparability and cost-efficiency, the authority said.
It also explores changes to how the framework is presented, including consolidating EBA products and aligning key regulatory definitions so the credit risk material is more coherent and easier to navigate.
The paper highlights issues connected to specific mandates in the credit risk area and sets out measures to be used in future mandated reports assessing parts of the EU’s Capital Requirements Regulation (CRR).
All contributions will be published after the consultation closes unless respondents ask otherwise.
