The EBA publishes roadmap on the implementation of the EU Banking Package

EBA has published a roadmap outlining the implementation of the EU Banking Package, which incorporates the final Basel III reforms in the EU. The roadmap aims to strengthen the prudential framework, ensure an international level playing field, and provide clarity to the industry on the development of mandates implementing the legislation. It also emphasizes the importance of a robust regulatory framework, efficient supervision, and enhanced risk control by credit institutions.
The Banking Package includes innovations in the European prudential framework, such as mandates for the EBA to address third-country branches, support the green transition by managing ESG risks, and provide stronger enforcement tools for supervisors overseeing EU banks. The EBA will also establish a Pillar 3 data hub for direct access to information, reinforcing market discipline.
The roadmap follows legal deadlines, with the first batch of regulatory products covering market risk, Pillar 3 disclosures, and supervisory reporting already published for consultation. The EBA expects to finalize significant components before the application date on 1 January 2025.
The roadmap comprises four phases, with mandates covering credit risk, market risk, operational risk, reporting and disclosure, market access, governance, and ESG. The EBA will consult on mandates around a year before the legal deadline, ensuring a proportionate and transparent approach to regulatory framework development.
Challenges in implementation include potential bottlenecks, resource shortages, and the need for early engagement with the industry. The EBA commits to monitoring the overall state of implementation and providing guidance on specific challenges, acknowledging the complexity of the mandates and potential delays in later phases.
Figure 1: EBA Roadmap on strengthening the prudential framework