EBA Consults on Revised Rules for Reclassifying Investment Firms as Credit Institutions

🏦 EBA consults on revised rules for reclassifying investment firms as credit institutions

The European Banking Authority (EBA) has launched a consultation on three draft Regulatory Technical Standards (RTS) concerning the reclassification of certain investment firms as credit institutions.

The draft RTS address three key areas:

🔹 EUR 30 billion threshold calculation – specifying how investment firms should calculate total assets when determining whether the threshold requiring a credit institution authorisation has been reached.

🔹 Monitoring and reporting – specifying the information investment firms must provide to competent authorities to monitor the relevant thresholds, including reporting for firms with average total assets of EUR 5 billion or more.

🔹 Waiver from credit institution authorisation – setting out the elements competent authorities should consider when deciding whether an investment firm can receive a waiver from the requirement to become a credit institution.

The EUR 30 billion threshold is particularly important. Where the relevant threshold is breached, an investment firm may be required to apply for authorisation as a credit institution and become subject to the applicable banking regulatory and supervisory framework.

The revised RTS reflect changes introduced by CRD6, including changes to which entities are included when calculating the threshold. The current proposal focuses the calculation on relevant entities domiciled in the EU, while also addressing EU branches of third-country undertakings and EU subsidiaries.

The EBA also proposes a framework for waivers, recognising that exceeding a threshold does not necessarily mean that an investment firm’s business model and risk profile are equivalent to those of a traditional credit institution.

📅 Consultation deadline: 31 December 2026