2026-01-01
The European Banking Authority proposes amending Commission Delegated Regulation (EU) No 241/2014 to reduce the timeline for institutions to apply for prior permission to reduce own funds and eligible liabilities instruments from four months back to three months. This change reflects the EBA's assessment that competent and resolution authorities have gained sufficient practical experience to process applications more efficiently while maintaining prudential standards. The draft also deletes obsolete simplified procedures for liquidation entities rendered void by recent legislative amendments regarding the minimum requirement for own funds and eligible liabilities.