2020/05/29

The European Banking Authority (EBA) launched a consultation (to run until 31 August 2020) on draft amended regulatory technical standards (RTS) on own funds and eligible liabilities, which reflect aspects of eligible liabilities as well as the changes to the own funds framework brought about by the revisions to the Capital Requirements Regulation (CRR II). The draft amended RTS specify some of the newly introduced criteria for eligible liabilities instruments derived from the own-funds regime. These include the absence of direct or indirect funding for the acquisition of ownership of eligible liabilities, the absence of incentives to redeem, the need for the resolution authority’s prior permission for the reduction of eligible liabilities. For some of these aspects, the mandates attributed to the EBA explicitly require ensuring full alignment between eligible liabilities and own funds.

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