meta_id 3399429

On February 5, 2026, the European Banking Authority (EBA) published new guidelines on diversification methods for retail lending portfolios. Norway's Financial Supervisory Authority (Finanstilsynet) has notified the EBA that it will follow these guidelines in accordance with Article 123 of Regulation (EU) No 575/2013 (CRR3). The guidelines establish conditions for applying a 75 percent risk weight to retail portfolio exposures and apply to all banks using the standardised approach for credit risk. For an exposure to qualify as a retail engagement, it must be one of a substantial number in the portfolio, and the portfolio must consist exclusively of similar exposures. Under the guidelines, retail lending exposures representing less than 0.2 percent of the total portfolio receive a 75 percent risk weight. Additionally, up to 10 percent of the total portfolio may consist of individual loans exceeding 0.2 percent of the portfolio. This calculation is performed without iterative circular calculations, with the relative size of each exposure determined at group level. Finanstilsynet will apply these guidelines to its supervisory practice and expects Norwegian firms to comply with them. The guidelines provide a standardised framework for calculating risk weights on retail exposures, ensuring consistent application across the European banking sector. This development affects all Norwegian banks using the standardised approach for credit risk measurement. Further information is available on the EBA website at the Guidelines on proportionate retail diversification methods under Article 123(1) of Regulation (EU) No 575/2013.