European

CRR 3: EBA publishes amended guidelines on definition of default

On 7 May 2026, the European Banking Authority (EBA) published its final report amending the guidelines on the application of the definition of ‘default’ under Article 178 of the CRR. The amending guidelines introduce targeted amendments to the past‑due treatment of non‑recourse factoring, extending the invoice‑level past‑due threshold from 30 to 90 days to better reflect operational features of invoice-based receivables and reduces the risk of incorrect default classifications. The guidelines have also been updated to align with CRR 3.

ESG: ECB publishes good practices for climate and nature-related risk stress testing and risk management

On 8 May 2026, the European Central Bank (ECB) published updated reports on good practices for climate and nature‑related (C&N) risk stress testing and risk management, aimed at helping credit institutions address gaps in their frameworks and vulnerabilities in the evolving risk environment. The reports set out detailed, non‑binding examples covering stress testing methodologies and risk management frameworks, intended to guide institutions in enhancing their capabilities in line with existing EBA Guidelines and the ECB’s expectations. While not creating new legal requirements, the ECB emphasises that these practices are designed to support consistent implementation across firms, including through more proportionate approaches for smaller institutions.

Single Resolution Board consultation on updated operational guidance on liquidity and funding in resolution

On 11 May 2026, the Single Resolution Board launched a public consultation on updated operational guidance on liquidity and funding in resolution. The draft guidance sets out how credit institutions should demonstrate their capabilities in this area and includes targeted amendments to existing expectations, without introducing new deliverables. The consultation will run until 6 July 2026.

Date published: 31 May 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.