The European Banking Authority (EBA) has published draft RTS amending the framework for prior permission to reduce own funds and eligible liabilities under the CRR.
The proposed changes primarily focus on shortening application timelines (from four to three months) and enhancing coordination between competent and resolution authorities. In parallel, the RTS remove the simplified regime for certain entities, aligning the framework with recent Level 1 developments.
These amendments have direct implications for capital planning, transaction structuring and internal governance processes, requiring earlier preparation, fully substantiated submissions and tighter alignment across treasury, risk and regulatory functions.