On 17 July 2026, the European Banking Authority (EBA) published a consultation paper on draft implementing technical standards (ITS) amending Commission Implementing Regulation (EU) 2016/2070 in relation to the benchmarking of internal models.
Article 78 of Capital Requirements Directive (CRD) IV requires national competent authorities (NCAs) to conduct an annual assessment of internal approaches used for the calculation of own funds requirements. To assist NCAs, the EBA sets out benchmark values that allow a comparison of institutions’ risk parameters.
Summary
The EBA are proposing the following amendments to the benchmarking process:
• Postponement: In light of the European Commission’s draft Fundamental Review of the Trading Book (FTRB) Delegated Act, benchmarking of the current Internal Models Approach will resume after the 2026 pause, while benchmarking of the FRTB Alternative Internal Models Approach (AIMA) will be postponed due to the expected transitional period and limited initial uptake of AIMA.
• Expanded Scope: The ITS have been amended to extend the exercise’s scope to banks exclusively applying the Alternative Standardised Approach (ASA).
• Simplified Instrument Portfolio: The portfolio instruments have been revised to update and streamline data collection, improving efficiency and reducing complexity.
• Postponed Timeline: The exercise timeline has been delayed from the first half to the second half of the year to account for the broader scope, now including ASA only banks, which require additional preparation time.
Next steps
The EBA has asked for feedback on these proposals by 3 September 2026.
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