The European Banking Authority has published revised Guidelines on internal governance under the Capital Requirements Directive, introducing measures designed to simplify compliance and align regulatory oversight with institutional risk profiles.<\/p>\n
Published on 5 November 2026, the revised Guidelines reflect statutory amendments introduced by Directive (EU) 2024\/1619, known as CRD VI, which modifies Directive 2013\/36\/EU.<\/p>\n
The Guidelines are established pursuant to Article 74 of Directive 2013\/36\/EU, which mandates the European Banking Authority to harmonise internal governance mechanisms and processes for credit institutions throughout the European Union.<\/p>\n
CRD VI introduces specific statutory additions to bank governance, including a requirement to map duties and responsibilities for members of the management body and key function holders, alongside a dedicated framework governing third-country branches.<\/p>\n
The updated Guidelines clarify core operational structures, internal control frameworks, management body responsibilities, and conflict of interest management, including instances where executive duties overlap with the role of Board Chair.<\/p>\n
Following feedback from public consultations and targeted outreach, the final text incorporates specific modifications compared to the initial consultation paper.<\/p>\n
These revisions include reducing the required level of detail for mapping duties and individual statements, applying greater proportionality to third-country branches, simplifying provisions on conflicts of interest, and lowering granularity in monitoring diversity and inclusion requirements.<\/p>\n
The framework adopts a risk-based approach to ensure regulatory expectations correspond to the size, internal organisation, nature, and operational complexity of each credit institution.<\/p>\n
| Area of Focus<\/th> | Adjustment from Consultation Draft<\/th><\/tr><\/thead> |
|---|---|
| Duty mapping<\/th> | Reduced level of detail required for duty mapping and individual statements<\/td><\/tr>\n |
| Third-country branches<\/th> | Greater proportionality in applicable governance provisions<\/td><\/tr>\n |
| Conflicts of interest<\/th> | Clearer and simplified rules on handling conflicts<\/td><\/tr>\n |
| Diversity and inclusion<\/th> | Reduced granularity in monitoring requirements<\/td><\/tr>\n<\/tbody><\/table><\/div><\/div>\nFrequently Asked Questions<\/strong><\/h2>\n
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