Domestic

CBI publishes first edition of Payment and E-Money Newsletter

In December 2025, the Central Bank of Ireland (CBI) issued the first edition of its newly launched Payment and E-Money Newsletter (newsletter).

The purpose of the newsletter is to provide updates on key regulatory developments in the payment and e-money sectors and to signpost relevant upcoming changes. Topics discussed in the newsletter include:

• Safeguarding thematic inspection: The CBI outlines the findings from a thematic inspection of safeguarding within payment institutions (PIs) and e-money institutions (EMIs). The review assessed the operational effectiveness of safeguarding processes and control infrastructure within those institutions.
• Customer service: Following a review of customer experience through the lens of customer complaints, the CBI sets out its expectations in relation to customer service, including in the context of the revised Consumer Protection Code (CPC).
• Fitness and probity: The CBI reminds PIs/EMIs:
  • of the requirement to appoint a designated responsible person for the role of PCF-56 Head of Safeguarding following the changes made to the list of pre-approval-controlled functions (PCFs) in November 2025. Further information will be provided by the CBI next year.
  • to comply with the updated evidentiary requirements for fitness and probity assessments which are outlined in the revised Fitness and Probity Guidance.
• Instant payments return: The CBI reminds PIs/EMIs providing SEPA instant payments that they will be required to submit a new return, the “SEPA Instant Payment Transfers Individual,” via the CBI’s Portal by 9 April 2026. The first submission of information from PIs/EMIs requires aggregated data for the periods 26 October 2022 to 31 December 2022 and the 2023 calendar year.
• AML risk evaluation questionnaire (REQ): Following consultation with firms and representative bodies, the CBI has published revised AML REQ templates and guidance, with the first return covering the calendar year 2024 to be submitted by 13 February 2026.
• CPC: The CBI reminds PIs/EMIs that the revised Consumer Protection Code 2025 will come into effect on 24 March 2026.

European

EBA consults on amendments to RTS on prudential requirements for central securities depositories and designated credit institutions

On 3 December 2025, the European Banking Authority (EBA) launched a public consultation on draft amendments to the regulatory technical standards (RTS) concerning certain prudential requirements for central securities depositories (CSDs) and designated credit institutions offering ‘banking-type ancillary services’. These proposed changes reflect updates introduced by the Central Securities Depositories Regulation (CSDR) Refit, notably permitting banking CSDs to provide banking-type ancillary services to other CSDs.

The proposed updates address cases where banking CSDs offer cash accounts directly to participants of other CSDs (designating CSDs) for settling cash payments in currencies other than the one of where the designating CSD is established. The amendments focus on the limited impact of this arrangement on the banking CSD’s risk profile. The EBA is updating the RTS to incorporate recent changes to Capital Requirements Directive 4 (CRD IV) and to align references with the amended CSDR text where applicable.

The consultation closes 3 March 2026.

EBA publishes follow-up peer review on authorisation of payment institutions and e-money institutions

On 5 December 2025, the EBA published a follow-up peer review report on authorisations under Directive (EU) 2015/2366 (PSD2). It follows a 2023 peer review report assessing progress in the authorisation of payment institutions and electronic money institutions under PSD2.

The follow-up peer review covers 2022 to 2024 and assesses how supervisors have implemented the recommendations in the 2023 peer review report. It focuses on authorisation processes, implementation of the EBA Guidelines on authorisation, governance and internal controls, AML/CFT frameworks and local substance. The follow-up peer review found:

• There have been on-going market shifts since the previous review, with application volumes and authorisation timelines still varying widely across Member States. Most Member States reported fewer applications compared to 2019-2022, largely due to market maturity and the end of Brexit-driven demand, though some saw increases. The median authorisation process in the EEA (counting from submission of an application) now takes nine and a half months, with delays often caused by incomplete or poor-quality applications and the time required to address deficiencies.
• Most supervisors have improved efficiency by providing clearer guidance, engaging with applicants earlier on and streamlining internal procedures. However, delays remain as not all changes have had a significant impact.
• While supervisors report better assessments of applicants’ governance and internal control mechanisms, divergent implementations remain in these areas and in the assessment of local substance. These divergences, linked to the broad requirements of PSD2, risk creating regulatory arbitrage and an uneven playing field across Member States.
• The EBA encourages supervisors to address the remaining gaps, and work towards greater convergence in governance and internal control frameworks across the EU.

EBA consults on draft RTS and ITS on corporate transactions requiring notification/approval under CRD 4

On 5 December 2025, the EBA launched a public consultation on draft RTs and implementing technical standards (ITS) concerning material acquisitions, material transfers of assets or liabilities, and mergers and divisions involving credit institutions or (mixed) financial holding companies under CRD IV. These RTS and ITS are mandated under Articles 27b(7), 27c and 27k of CRD 4. The draft RTS mandated under Article 27b(7) set out:

• the minimum list of information to be provided for material acquisitions, material transfers of assets and liabilities, mergers and divisions
• a common assessment methodology of the criteria set out for the supervisory scrutiny of material acquisitions, mergers and divisions
• the process applicable to notification and the prudential assessment required for the tools on material acquisitions, mergers and division

The draft ITS mandated under Article 27c set out common procedures, forms and templates for the consultation process between the relevant competent authorities in case of material acquisitions. The draft ITS mandated under Article 27k set out common procedures, forms and templates for the consultation process between the relevant competent authorities in case of mergers or divisions.

The consultation closes on 5 March 2026.

ECB publishes two reports on simplification of EU banking rules and streamlining banking supervision

On 11 December 2025, the European Central Bank (ECB) published the recommendations of the Governing Council’s high-level task force on simplification in a report titled ‘Simplification of the European regulatory, supervisory and reporting framework.’

These recommendations aim to simplify the EU regulatory, supervisory and reporting frameworks for credit institutions, while maintaining the resilience of the European banking system and ensuring that micro prudential, macroprudential and resolution authorities continue to meet their objectives effectively. These recommendations were endorsed by the Governing Council of the ECB and will be presented to the European Commission, which is preparing a report on the overall situation of the banking system which is due to be presented later this year.

EBA-ECB publish report on payment fraud

On 15 December 2025, the EBA and the ECB published the 2025 edition of their joint report on payment fraud covering semi-annual data for 2022 to 2024. The report confirms strong customer authentication requirement introduced in 2020 has contributed to reducing fraud levels but also highlights the need for ongoing vigilance and the adaptation of security measures to counter new emerging fraud types.

EBA publishes final draft technical standards setting out the threshold and prudential risk management requirements of CSDs and credit institutions providing banking-type ancillary services

On 16 December 2025, the EBA published its final report on draft RTS establishing the threshold up to which non-banking central securities depositories (designating CSDs) can use banking CSDs or credit institutions for cash settlement without entities requiring additional authorisation.

Article 54(9) of Regulation (EU) No 909/2014 CSDR mandates the EBA to develop draft RTS to determine the threshold referred to in paragraph 5 of Article 54 of CSDR and accompanying appropriate risk management and prudential requirements to mitigate risks related to the designation of credit institutions in compliance with paragraph 2a of Article 54 of CSDR. Key features of the RTS include:

• Threshold levels: the minimum threshold level is set at €3.75bn and 1.5% of annual settlement volume, while the maximum threshold is €6.25bn and 2.5% of annual settlement volume.
• Dynamic thresholds: the standards introduce a dynamic threshold that adjusts according to the risk profile of both the designating CSD and the designated credit institution. As activity levels increase, so do the prudential and risk management requirements.
• Accompanying risk management and prudential measures: proportionate to the threshold.

EBA provides guidance to banks on enhanced reporting requirements for operational risk ahead of new June 2026 reference date

On 17 December 2025, the EBA published guidance for banks on how to manage enhanced reporting requirements for operational risk. This follows the postponement of the first reference date under the amended implementing technical standards. This comes after the European Commission adopted Regulation (EU) 2025/2475, which delays the application of new operational risk reporting obligations to the end of June 2026. Key points for credit institutions include:

• Extended preparation period: Credit institutions now have until the end of June 2026, rather than March 2026, to comply with the new reporting requirements. This provides a six month time period to adapt to the change after the Regulation enters into force.
• Guidance on reporting: The EBA clarifies that credit institutions should use the COREP OF module (release 4.2) for operational risk reporting. Templates C 16.02, C 16.03, and C 16.04 will not be required for the March 2026 reference date, and the first mandatory submission will be in June 2026. However, credit institutions can choose to report these templates voluntarily from March 2026.
• Ongoing requirements: Credit institutions must still report template C 16.01 using the updated technical tables in release 4.2, but information on “other operating expenses” will not be required for March 2026.
• Updated instructions and other IT solutions: The EBA has published amended instructions for both reporting and disclosure of operational risk, correcting references and ensuring consistency. They shall apply starting with reference date end June 2026.

MoU entered between EBA, ECB, national central banks and national supervisory authorities regarding non-bank PSPs’ access to payment systems

On 18 December 2025, the EBA announced that it has entered into a Memorandum of Understanding (MoU) with the ECB, national central banks and national supervisory authorities across the European Economic Area to strengthen co-operation and information sharing in support of non-bank payment service providers’ access to central bank-operated payment systems.

The MoU sets out clear principles for collaboration and harmonises the processes and procedures for the exchange of information between national supervisory authorities and national central banks in relation to non-bank payment service providers’ participation in payment systems operated by central banks. This approach seeks to ensure consistent outcomes and promote a level playing field across the European payments market.

Council of the EU agrees negotiating position on digital euro

On 19 December 2025, the Council of the EU announced that it has agreed its negotiating position on the proposals for regulations to establish a legal framework for a digital euro. The European Parliament has not yet finalised its negotiating position. The Parliament’s ECON Committee adopted its draft reports on 3 November 2025. The deadline for tabling amendments was 12 December 2025. It is understood that the ECON Committee is due to consider the amendments to the draft reports on 28 January 2026.

ECB launched fast-track assessments for credit institutions’ capital and securitisation operations

On 19 December 2025, the ECB announced it has streamlined its assessment of credit institutions’ capital and securitisation operations. From January 2026, credit institutions will be able to receive a quicker response from the ECB in circumstances where they wish to reduce capital by repurchasing shares or other capital instruments or reduce their capital requirements after a significant risk transfer. The approval time is now reduced to two weeks from three months.

Date published: 21 January 2026

This publication provides an overview of certain legal and regulatory developments that may be of interest to certain entities. It does not purport to provide analysis of law or legal advice and is strictly for information purposes only.