European Banking Authority publish final report and draft RTS on Own Funds and Eligible Liabilities under CRR

27 August 2021

The EBA published its final report, this week, on the draft regulatory technical standards for own funds and eligible liabilities. The draft RTS specify some of the newly introduced criteria for eligible liabilities instruments derived from the own funds regime. These include the absence of direct or indirect funding for the acquisition of ownership of eligible liabilities, the absence of incentives to redeem, the need for the resolution authority’s prior permission for the reduction of eligible liabilities. For some of these aspects, the EBA is explicitly required to ensure full alignment between eligible liabilities and own funds.

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