EBA responds to EC's non-adoption of amending RTS on own funds and eligible liabilities instruments

The European Banking Authority has published a letter dated 8 September in response to the European Commission's (EC) decision not to endorse the EBA's final regulatory technical standards (RTS) amending Commission Delegated Regulation (EU) No 241/2014. The draft RTS would have shortened the timeframe for competent and resolution authorities to process an institution's application to reduce own funds and eligible liabilities instruments from four to three months. While acknowledging the reasoning behind the EC's decision, the EBA notes that the amendment was intended to address concerns from supervisors and institutions who considered the current timeframe too long. The EBA confirms that it will not resubmit revised draft RTS. Instead, in line with the EC's suggestion, it will pursue a broader review of Delegated Regulation 241/2014, with a view to delivering simplification and efficiency gains.

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