The European Central Bank (ECB) has revised its policies on the exercise of options and discretions (O&Ds) under EU banking law, aligning supervisory practices with the upcoming CRR III / CRD VI reforms. The updated guide provides greater clarity for significant institutions, reduces regulatory uncertainty for banks, and promotes consistency across the Banking Union. National authorities are expected to apply the revised approach to less significant institutions as well, ensuring more uniform supervision and enhanced transparency for market participants.