meta_id 3049661

On 9 April 2026, the European Banking Authority (EBA) launched a public consultation on revised Guidelines on limits on exposures to shadow banking entities carrying out banking activities outside a regulated framework. The revised Guidelines align with the updated EU large-exposure reporting framework introduced by Regulatory Technical Standards (RTS) that entered into force in January 2024. Key changes include moving the calculation basis from eligible capital to Tier 1 capital, while maintaining existing governance requirements and primary and fallback methods for setting exposure limits. The proposal removes the 0.25% materiality threshold to simplify the framework. The Guidelines aim to support sound risk management and governance practices across institutions. The consultation invites feedback on implementation impacts, current institutional practices, and the effects of quantitative limits on lending to shadow banking entities. The EBA is gathering information on how institutions identify exposures to shadow banking entities, establish limits, and manage related risks. This input will inform policy decisions on finalising the Guidelines and broader policy work on shadow banking entities, including a report on their contribution to the Capital Markets Union and an assessment of institutional exposures and limits, both expected in December 2027. The EBA will hold a virtual public hearing on 25 June 2026 from 10:00 to 12:00 CEST. Interested stakeholders must register by 17 June 2026 at 16:00 CEST. The deadline for submitting comments is 9 July 2026 at 23:59 CEST via the EBA's consultation page. All contributions will be published following the consultation period unless otherwise requested. The EBA is mandated by Article 395(2) of Regulation (EU) No 575/2013 (CRR 3) to revise these Guidelines by 10 January 2027.