meta_id 2984637

On 19 March 2026, the European Banking Authority (EBA) published its final report on draft regulatory technical standards amending Commission Delegated Regulation (EU) No 241/2014. The standards reduce the timeline for institutions to submit applications for prior permission to reduce own funds and eligible liabilities instruments from four months to three months. The amendment addresses feedback received during consultation on the previous regulatory technical standards, which extended the application period from three to four months. Stakeholders consistently noted the four-month timeline was unnecessarily lengthy. Following monitoring of competent and resolution authorities' practical implementation since 2023, the EBA determined that authorities are now capable of processing applications within the shorter three-month period. The revised standards apply to both ad hoc permissions and new general prior permissions under Articles 77, 78, and 78a of Regulation (EU) No 575/2013. Additionally, the standards reduce the consultation period between competent and resolution authorities to a maximum of two months, with resolution authorities required to communicate their proposed margin within one month. The amendments also delete provisions establishing a simplified procedure for liquidation entities, following changes introduced by Directive (EU) 2024/1174. The draft regulatory technical standards will be submitted to the European Commission for endorsement, followed by scrutiny from the European Parliament and Council before publication in the Official Journal of the European Union. All three respondents to the public consultation, which closed on 9 October 2025, supported the proposed reduction in the application timeline.