Regulatory Alerts2026-01-01
Opinion on the Commission’s amendments to the final draft RTS on equivalent legal mechanism
The European Banking Authority issued this opinion to address the European Commission's proposed amendments to the final draft Regulatory Technical Standards regarding equivalent legal mechanisms for residential construction guarantees. The EBA objects to substantive changes that would raise the creditworthiness threshold for protection providers and remove the requirement for national law mandates, arguing these weaken core prudential safeguards. Additionally, the Authority recommends reverting specific non-substantive amendments concerning intragroup treatment and drafting clarifications to ensure legal certainty and supervisory consistency.
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