Regulatory Watch
NFC continuously monitors the regulatory landscape and supports banks and credit market companies by analysing regulatory developments that affect their business. Below is an extract of the main banking regulatory news from the past quarter.
Top 3 Banking Regulatory News for Q4 2025
- EBA consults on revised guidelines on the supervisory review and evaluation process (SREP) and supervisory stress tests
The European Banking Authority (EBA) has launched a public consultation on its revised guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) and supervisory stress tests. The revised guidelines introduce changes in all main SREP elements. They strengthen the proportionality aspects, taking into account the peer review of proportionality implementation in SREP and the relevant recommendations of the EBA Advisory Committee on Proportionality (ACP). The draft revised guidelines include, among other things, adaptations to the package on interest rate risk in the banking book (IRRBB) and credit spread risk arising from non-trading book activities (CSRBB), as well as incorporating ESG factors and integrating the framework into the Digital Operational Resilience Regulation (DORA).
Read more: https://www.eba.europa.eu/publications-and-media/press-releases/eba-consults-revised-guidelines-supervisory-review-and-evaluation-process-and-supervisory-stress
- EBA publishes its final guidelines on environmental scenario analysis
The European Banking Authority (EBA) today published its final guidelines on environmental scenario analysis, which complement the EBA guidelines on the management of environmental, social and governance (ESG) risks. The guidelines aim to strengthen institutions' ability to use forward-looking approaches to assess and manage environmental risks. The guidelines are based on two complementary pillars: (i) the integration of environmental risks into institutions' existing stress testing frameworks, enabling banks to assess the short-term financial impact of environmental risks and ensure that capital and liquidity levels remain adequate; and (ii) resilience analysis, which looks further ahead to assess the medium- to long-term implications of environmental risks and opportunities for banks' business models, strategies and risk profiles. Together, these two elements will help institutions to more effectively integrate environmental risk considerations into their overall risk management and strategic planning. They also provide a common reference framework to support a consistent, forward-looking approach to environmental risk management in the EU banking sector. The guidelines will apply from 1 January 2027.
Read more: https://www.eba.europa.eu/publications-and-media/press-releases/eba-publishes-its-final-guidelines-environmental-scenario-analysis
- The government has submitted a proposal to raise the mortgage cap and abolish stricter amortisation requirements
In the legislative consultation paper, the Government proposes a new act on the restriction of mortgages to replace Finansinspektionen's current regulations and general advice on amortisation requirements and mortgage caps. The proposal includes removing the stricter amortisation requirement of at least 1% for those with mortgages higher than 4.5 times their gross annual income, and raising the mortgage cap from 85% to 90% of the market value of the home when buying a new home. For additional loans, the loan-to-value ratio may not exceed 80% and the home can only be revalued every five years in order to increase the borrowing capacity. For mortgages with an LTV of up to 50%, banks should encourage repayment to maintain a healthy amortisation culture. The amendments are proposed to enter into force on 1 April 2026.
Read more: https://www.regeringen.se/pressmeddelanden/2025/12/forslag-pa-hojt-bolanetak-och-slopande-av-skarpt-amorteringskrav/
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