The European Banking Authority (EBA) published a no-action letter and technical considerations to support consistent implementation of the revised market risk framework for EU banks. The measures address the boundary between the banking book and trading book, internal risk transfers, and reporting requirements under the Fundamental Review of the Trading Book (FRTB) framework. The EBA recommends competent authorities avoid prioritizing supervisory action on these provisions until the Delegated Act modifying the framework enters into force. Technical clarifications aim to resolve operational complexities for institutions applying the institution-specific multiplier introduced by the Delegated Act, ensuring a level playing field. The EBA also provided guidance on supervisory benchmarking. The no-action letter, issued under Article 9c of the EBA Founding Regulation, supports smooth implementation of the Delegated Act, which will take effect from 1 January 2027.
© European Banking Authority.
Summary adapted from material on the EBA website (https://www.eba.europa.eu ).
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