The European Banking Authority (EBA) published an opinion on the amendments proposed by the European Commission (EC) to the EBA final draft regulatory technical standards (RTS) on own funds and eligible liabilities, in which the EBA expresses its disagreement with two substantive proposed changes and agrees with the other amendments, which are considered non-substantive. The EC’s version of the RTS, compared to the final draft RTS submitted by the EBA in May 2021, includes two changes, with which the EBA disagrees, related to: i) the provisions covering the notions of direct and indirect funding and ii) the prior permission process for certain types of liquidation entities. The EBA considers that the RTS already contain the necessary principles or tools needed for capturing all cases of direct or indirect funding without any additional description. And the EBA considers that its final draft RTS included a prior permission regime proportionate to the goals of the regulation and that no change is required.

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