S.I. No. 326/2026 - European Union (Capital Requirements) (Amendment) Regulations 2026

“75A. (1) The Bank shall ensure that institutions have, as part of their governance arrangements, including the risk management framework required under Regulation 61, robust strategies, policies, processes and systems for the identification, measurement, management and monitoring of ESG risks over the short, medium and long term.

• (2) The strategies, policies, processes and systems referred to in paragraph (1) shall be –

  • (a) proportionate to the scale, nature and complexity of the ESG risks of the business model and scope of the institution’s activities, and

  • (b) consider the short and medium term, and a long-term time horizon of at least 10 years.

• (3) The Bank shall ensure that institutions test their resilience to long-term negative impacts of ESG factors, both under baseline and adverse scenarios within a given timeframe, starting with climate-related factors.

• (4) The Bank shall ensure that, in respect of the resilience testing referred to in paragraph (3), institutions include a number of ESG scenarios reflecting potential impacts of environmental and social changes and associated public policies on the long-term business environment.

• (5) The Bank shall ensure that, in respect of the resilience testing process referred to in paragraph (3), institutions use credible scenarios, based on the scenarios elaborated by international organisations.

• (6) The Bank shall assess and monitor the development of institutions’ practices concerning their ESG strategies and risk management, including the plans that include quantifiable targets and processes to monitor and address the ESG risks arising in the short, medium and long term, to be prepared in accordance with Regulation 64.

• (7) The assessment referred to in paragraph (6) shall take into account the institutions’ sustainability-related product offerings, their transition finance policies, related loan origination policies, and ESG-related targets and limits.

• (8) The Bank shall assess the robustness of the plans referred to in paragraph (6) as part of the supervisory review and evaluation process.

• (9) Where relevant for the assessment referred to in paragraph (6), the Bank may cooperate with authorities or public bodies in charge of climate change and environmental supervision.”.

Amendment of Regulation 76 of Principal Regulations

31.

• (a) in paragraph (2), by the substitution of the following subparagraph for subparagraph (e):

• “(e) the chair of the management body, in its supervisory function of an institution, shall not exercise simultaneously the functions of a chief executive officer within the same institution.”, and

• (b) by the insertion of the following paragraphs after paragraph (9):

• “(10) The Bank shall ensure that institutions draw up, maintain and update –

  • (a) individual statements setting out the roles and duties of all members of the management body in its management function, of senior management and of key function holders, and

  • (b) a mapping of duties, including details of the reporting lines, the lines of responsibility, and the persons who are part of the governance arrangements as referred to in Regulation 61 and the duties of those persons.

• (11) The Bank shall ensure that the individual statements of the roles and duties, and the mapping of duties referred to in paragraph (10), are made without prejudice to the overall collective responsibility of the management body.

• (12) Institutions shall ensure that the individual statements of the roles and duties, and the mapping of duties referred to in paragraph (10), are made available to the Bank at all times and shall, for the purpose of obtaining an authorisation under section 9 of the Act of 1971, be communicated to the Bank.”.

Amendment of Regulation 79 of Principal Regulations

32.

• (a) in paragraph (1), by the substitution of “good repute, act with honesty, integrity and independence of mind” for “good repute”,

• (b) in paragraph (2), by the substitution of “paragraphs (3) to (10), except as regards temporary administrators appointed by competent authorities under Article 29(1) of Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014⁴³ and special managers appointed by resolution authorities under Article 35(1) of that Directive” for “paragraphs (3) to (7)”,

• (c) by the insertion of the following paragraph after paragraph (2):

• “(2A) For the purposes of paragraph (1), the absence of a criminal conviction or of ongoing prosecutions for a criminal offence shall not in itself be sufficient to fulfil the requirement to be of good repute and act with honesty and integrity.”,

• (d) in paragraph (5), by the substitution of “as well as the associated risks it is exposed to, and the impacts it creates in the short, medium and long term, taking into account ESG factors” for “including the main risks”,

• (e) in paragraph (6) –

• (i) by the substitution of “member of their management body shall be of good repute and” for “member of their management body shall”, and

• (ii) by the substitution of “the management body” for “the senior management”,

• (f) in paragraph (6A), by the substitution of “a credit institution permanently affiliated to a central body” for “an affiliated company or an affiliated entity”,

• (g) in paragraph (7), by the substitution of “institution, financial holding company or mixed financial holding company” for “institution”,

• (h) in paragraph (8), by the substitution of the following subparagraph for subparagraph (b):

• “(b) executive or non-executive directorships held within either –

  • (i) institutions, financial holding companies and mixed financial holding companies which are members of the same institutional protection scheme provided that the conditions set out in Article 113(7) of the Capital Requirements Regulation are fulfilled or entities where the same institutional protection scheme holds a qualifying holding, or

  • (ii) undertakings (including non-financial entities) in which the institution, financial holding company or mixed financial holding company holds a qualifying holding.”,

• (i) by the insertion of the following paragraph after paragraph (8):

• “(8A) For the purpose of paragraph (8), a group shall mean a group of undertakings that are related to each other as described in Article 22 of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013⁴⁴ or a group of undertakings that are subsidiaries of the same financial holding company or mixed financial holding company.”,

• (j) in paragraph (10), by the substitution of “institution, financial holding company or mixed financial holding company” for “institution”,

• (k) by the deletion of paragraph (11),

• (l) in paragraph (12), by the substitution of “management body, including on ESG risks and impacts and on ICT risk as defined in Article 4(1), point (52c), of the Capital Requirements Regulation” for “management body”,

• (m) in paragraph (13), by the substitution of “nomination committees, where established, engage a broad set of qualities and competences when recruiting members and to proportionally promote diversity and gender balance in the management body” for “nomination committees, engage a broad set of qualities and competences when recruiting members to the management body”,

• (n) in paragraph (15), by the substitution of “paragraph (11)” for “paragraph (12)”,

• (o) by insertion of the following paragraph after paragraph (16):

• “(16A) This Regulation shall be without prejudice to provisions on the appointment of members of the management body in its supervisory function by regional or local elected bodies or on appointments where the management body does not have any competence in the process of selecting and appointing its members as provided for by law.”, and

• (p) in paragraph (18) by the substitution of “terrorist financing within the meaning of Article 1 of Directive 2015/849” for “terrorist financing”.

Amendment of Regulation 79A(1) of Principal Regulations

33.

• “(1) Where a member of a management body, head of internal control functions or the chief financial officer of an institution, financial holding company or mixed financial holding company fails to fulfil the requirements set out in paragraphs (1) to (7) of Regulation 79, the Bank may remove that person as a member of a management body, head of internal control functions or the chief financial officer in accordance with this Regulation and Regulations 79B to 79F.”.

Amendment of Regulation 79B of Principal Regulations

34.

• (a) in paragraph (1), by the insertion of “the chief financial officer, head of internal control functions or” after “ proposes to remove”, and

• (b) in paragraph (2)(b), by the insertion of “or the requirements of Regulation 79I(1)” after “Regulation 79(1) to (7)”.

Amendment of Regulation 79C of Principal Regulations

35.

• (a) in paragraph (1), by the insertion of “, head of internal control functions or the chief financial officer” after “the management body”, and

• (b) in paragraph (2)(a), by the substitution of “from which the person is being removed as a member of the management body, head of internal control functions or the chief financial officer” for “from the management body of which the person is being removed as a member”.

Amendment of Regulation 79D of Principal Regulations

36.

• (a) in paragraph (1), by the insertion of “or Regulation 79I(1)” after “the requirements set out in paragraph (1) to (7) of Regulation 79”, and

• (b) in paragraph (3)(b), by the insertion of “or Regulation 79I(1)” after “the requirements set out in paragraph (1) to (7) of Regulation 79”.

Amendment of Regulation 79E of Principal Regulations

37.

• (a) in subparagraph (i), by the insertion of “, head of internal control functions or the chief financial officer” after “member of the management body”, and

• (b) in subparagraph (ii), by the insertion of “, head of internal control functions or the chief financial officer” after “member of the management body”.

Amendment of Regulation 79G of Principal Regulations

38.

Suitability assessment

39.

“79H. (1) Institutions, financial holding companies and mixed financial holding companies shall –

• (a) ensure that members of their management body fulfil at all times the criteria and requirements set out in Regulation 79(1) to (10), and

• (b) assess the suitability of members of their management body taking into account supervisory expectations, before they take up their position and periodically, as laid down in applicable laws and regulations, guidelines and internal suitability policies.

• (2) Where the institution, financial holding company or mixed financial holding company concludes, based on the internal suitability assessment referred to in paragraph (1)(b), that the member or the prospective member of the management body concerned does not fulfil the criteria and requirements set out in paragraph (1), it shall –

  • (a) ensure that the prospective member concerned does not take up the position under consideration where that assessment is completed before the prospective member takes up that position,

  • (b) remove such a member from their management body, in a timely manner, or

  • (c) take the additional measures necessary to ensure that such a member is or becomes suitable for the position concerned, in a timely manner.

• (3) Institutions, financial holding companies and mixed financial holding companies shall ensure that information about the suitability of the members of the management body remains up-to-date.

• (4) Institutions, financial holding companies and mixed financial holding companies shall, upon request, provide the information referred to in paragraph (3) to the Bank through means determined by the Bank.

• (5) Where a member or prospective member of the management body does not fulfil the criteria and requirements set out in Regulation 79(2) to (10), the Bank may –

  • (a) prevent such prospective member from becoming part of the management body,

  • (b) remove such members from the management body in accordance with Regulations 79A to 79G, or

  • (c) require the entities concerned to take additional measures necessary to ensure that such members are or become suitable for the position concerned.

• (6) The Bank or the ECB as the case may be, shall, in particular, verify whether the criteria and requirements set out in Regulation 79(2) to (10) are still fulfilled where there are reasonable grounds to suspect that money laundering or terrorist financing within the meaning of Article 1 of Directive 2015/849 is being or has been committed or attempted, or that there is an increased risk thereof, in connection with the institution, financial holding company or mixed financial holding company.

• (7) As soon as any new facts or other circumstances that could affect the suitability of the members of the management body become known, the institution, financial holding company or mixed financial holding company shall reassess the suitability of those members and shall inform the Bank thereof without undue delay.

• (8) Where the Bank becomes aware that the relevant information concerning the suitability of the members of the management body has changed and such change could affect the suitability of the members concerned, the Bank shall reassess their suitability.

• (9) The Bank shall not be required to reassess the suitability of the members of the management body when their mandate is renewed unless relevant information that is known to the Bank has changed and such change could affect the suitability of the member concerned.

• (10) Where the Bank is not the authority or body that supervises the institution, financial holding company or mixed financial holding company, in accordance with Directive 2015/849 and is not competent for ensuring compliance with that Directive, it may request that authority or body to consult, in the context of their verifications, and on a risk-sensitive basis, the relevant information concerning the heads of internal control functions and the chief financial officer.

• (11) The Bank may request access to the central AML/CFT database referred to in Regulation (EU) 2024/1620 of the European Parliament and of the Council of 31 May 2024⁴⁵ and the Authority for Anti-Money Laundering and Countering the Financing of Terrorism established by that Regulation shall decide whether to grant such access.”.

Key function holders and suitability assessment

40.

“79I. (1) Institutions, financial holding companies and mixed financial holding companies shall ensure that key function holders are at all times of sufficiently good repute, act with honesty and integrity and possess sufficient knowledge, skills and experience necessary to perform their duties.

• (2) For the purpose of paragraph (1), the absence of a criminal conviction or of ongoing prosecutions for a criminal offence shall not in itself be sufficient to fulfil the requirement to be of good repute and act with honesty and integrity.

• (3) Institutions, financial holding companies and mixed financial holding companies shall –

  • (a) ensure that key function holders fulfil at all times the criteria and requirements set out in paragraph (1), and

  • (b) assess the suitability of key function holders before they take up their position and periodically, taking into account supervisory expectations, as laid down in applicable laws and regulations, guidelines and internal suitability policies.

• (4) Where the institution, financial holding company or mixed financial holding company concludes, based on the internal suitability assessment referred to in paragraph (3), that a person does not fulfil the criteria and requirements set out in paragraph (1), the entities shall –

  • (a) not appoint that person as a key function holder, where that assessment is completed before the person takes up the position,

  • (b) remove that person as a key function holder, in a timely manner; or

  • (c) take the additional measures, in a timely manner, necessary to ensure that such a person is or becomes suitable for the position concerned.

• (5) Institutions, financial holding companies and mixed financial holding companies shall take all measures necessary to ensure the appropriate functioning of the position of a key function holder, including replacing the key function holder if that person ceases to meet the suitability criteria and requirements.

• (6) Institutions, financial holding companies and mixed financial holding companies shall ensure that information about the suitability of the key function holders remains up-to-date.

• (7) Institutions, financial holding companies and mixed financial holding companies shall, upon request, provide the information referred to in paragraph (6) to the Bank through means determined by the Bank.

• (8) The Bank shall assess that the heads of internal control functions and the chief financial officer fulfil at all times the criteria and requirements set out in paragraph (1) where those heads or the officer are appointed for roles at least in the following entities:

  • (a) EU parent institutions that qualify as large institutions;

  • (b) parent institutions in a Member State that qualify as large institutions, except where they are affiliated to a central body;

  • (c) central bodies that qualify as large institutions or that supervise large institutions affiliated to them;

  • (d) stand-alone institutions in the Union that qualify as large institutions;

  • (e) large subsidiaries, as defined in Article 4(1), point (147), of the Capital Requirements Regulation;

  • (f) parent financial holding companies in a Member State, parent mixed financial holding companies in a Member State, EU parent financial holding companies and EU parent mixed financial holding companies, having large institutions within their group, except those falling under Regulation 9D(1)(c).

• (9) Where the heads of internal control functions and the chief financial officer do not fulfil at all times the criteria and requirements set out in paragraph (1), the Bank may –

  • (a) prevent such heads or officer from taking up the position,

  • (b) remove such heads or officer from the position, or

  • (c) require the entities concerned to take additional appropriate measures to ensure that such heads or officer are or become suitable for the position concerned.

• (10) The entities referred to in paragraph (8) shall, as soon as new facts or other circumstances that could affect the suitability of the heads of internal control functions and the chief financial officer become known, reassess the suitability of those heads and that officer, and shall inform the Bank thereof without undue delay.

• (11) Where the Bank becomes aware that the relevant information concerning the suitability of the heads of internal control functions and the chief financial officer has changed and such change could affect the suitability of the heads or of the officer concerned, the Bank shall reassess their suitability.

• (12) The Bank shall not be required to reassess the suitability of such heads or officer when their contract is renewed or extended, unless relevant information that is known to competent authorities has changed and such change could affect the suitability of the heads or officer concerned.

• (13) The Bank shall consider setting a maximum period for concluding the suitability assessment, at least with respect to the appointment of the heads of internal control functions and that chief financial officer for positions in the entities referred to in paragraph (8).

• (14) The Bank may extend the maximum period referred to in paragraph (13) where appropriate.

• (15) Where the Bank is not the authority or body that supervises the institution, financial holding company or mixed financial holding company in accordance with Directive 2015/849 and is not competent for ensuring compliance with that Directive, it may request that authority or body to consult, in the context of their verifications, and on a risk-sensitive basis, the relevant information concerning the heads of internal control functions and the chief financial officer.

• (16) The Bank may request access to the central AML/CFT database referred to in Regulation (EU) 2024/1620 of the European Parliament and of the Council of 31 May 2024⁴⁶ and the Authority for Anti-Money Laundering and Countering the Financing of Terrorism shall decide whether to grant such access.

• (17) In this Regulation, ‘stand-alone institution in the Union’ means an institution that is not subject to prudential consolidation in the Union pursuant to Part One, Title II, Chapter 2, of the Capital Requirements Regulation, and that has no EU parent undertaking subject to such prudential consolidation.”.

Amendment of Regulation 80 of Principal Regulations

41.

• (a) in paragraph (3)(e), by the substitution of “internal control functions” for “control functions”,

• (b) in paragraph (3)(f), by the substitution of “the heads of internal controls functions” for “the senior officers in the risk management and compliance functions”, and

• (c) in paragraph (5)(b), by the substitution of “internal control functions” for “control functions”.

Amendment of Regulation 82 of Principal Regulations

42.

• (a) in paragraph (1)(a), by the substitution of the following clause for clause (i):

• “(i) the performance of the individual, taking into account financial and non-financial criteria, including the treatment of risks outlined in Regulation 64(2) to (4D),” and

• (b) in paragraph (10)(a)(i), by the deletion of “as defined in point (146) of Article 4(1) of the Capital Requirements Regulation”.

Amendment of Regulation 85 of Principal Regulations

43.

• “(5AA) For the purpose of conducting the review and evaluation, the Bank may consider whether all of the following conditions are met:

  • (a) the institution is not a G-SII, a non-EU G-SII, or a G-SII entity in accordance with the Capital Requirements Regulation;

  • (b) the institution has not been identified as another systemically important institution (O-SII) in accordance with Regulations 121 and 122;

  • (c) the institution is part of a group where the parent institution and the vast majority of the subsidiary institutions are related to each other as described in Article 22 of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013⁴⁷ ;

  • (d) the subsidiary institutions referred to in point (c) of this subparagraph meet all of the following conditions:

    • (i) they qualify, or the vast majority of them qualify, as mutuals, cooperative societies or savings institutions in accordance with Article 27(1), point (a) of the Capital Requirements Regulation and the applicable national law includes a cap or restriction on the maximum level of distributions;

    • (ii) on an individual or sub-consolidated basis, their total assets do not exceed €30 billion.”.

Amendment of Regulation 86 of Principal Regulations

44.

• (a) in paragraph (1), by the insertion of the following subparagraph after subparagraph (i):

• “(k) the extent to which the institutions have put in place appropriate policies and operational actions related to quantifiable targets and milestones set out in the plans to be prepared in accordance with Regulation 64(2) to (4D).”, and

• (b) by the insertion of the following paragraphs after paragraph (11):

• “(12) The review and evaluation performed by the Bank pursuant to Regulation 85, shall include the assessment of:

  • (a) the institutions governance and risk management processes for dealing with ESG risks, and

  • (b) the institutions’ exposures to ESG risks.

• (13) For the purposes of paragraph (12), in determining the adequacy of institutions processes and exposures, the Bank shall take into account the business model of the institution.

• (14) Institutions’ exposures to ESG risks shall be assessed also on the basis of institutions’ plans to be prepared in accordance with Regulation 64(2) to (4D) and institutions’ governance and risk management processes with regard to ESG risks shall be brought into line with the objectives set out in those plans.

• (15) The review and evaluation performed by the Bank pursuant to Regulation 85 shall include the assessment of –

  • (a) the institutions’ plans to be prepared in accordance with Regulation 64(2) to (4D),

  • (b) the progress made towards addressing the ESG risks arising from the process of adjustment towards climate neutrality, and

  • (c) the progress towards other relevant Union regulatory objectives in relation to ESG factors.

• (16) The review and evaluation performed by the Bank pursuant to Regulation 85, shall include the assessment of institutions’ governance and risk management processes for exposures to crypto-assets and the provision of crypto-asset services, including by considering institutions’ policies and procedures for identifying risks, as well as the adequacy of the results of the assessments referred to in Regulation 67(1)(e) and 71(8).”.

Amendment of Regulation 88 of Principal Regulations

45.

• “(1A) Institutions and third parties acting in a consulting capacity to institutions in the context of stress testing exercises shall refrain from activities that can impair a stress test, such as benchmarking, exchange of information among themselves, agreements on common behaviour, or optimisation of the submissions of institutions and third parties acting in a consulting capacity for stress tests.

• (1B) In accordance with Regulation 53, the Bank shall have all information gathering and investigatory powers that are necessary to detect the activities outlined in paragraph (1A).”.

Amendment of Regulation 89(2) of Principal Regulations

46.

• “(d) if, for a trading desk using an internal market risk model, results of back-testing or the profit and loss attribution test indicate that the model is no longer sufficiently accurate, the Bank shall review the conditions for the permission for using the internal model or impose appropriate measures to ensure that the model is improved promptly.”.

Amendment of Regulation 92 of Principal Regulations

47.

• (a) in paragraph (1), by the substitution of the following subparagraph for subparagraph (b):

• “(b) Regulation 86 (1), (5), (6), (7), (7A), (12), (13), (14), (15) and (16),”,

• (b) in paragraph (2)(e), by the substitution of “business, including with regard to the acceptance of deposits, operations” for “business, operations”,

• (c) in paragraph (2)(l), by the substitution of “the purposes of these Regulations;” for “the purposes of these Regulations.”, and

• (d) by the insertion of the following paragraphs after paragraph (2)(l):

• “(m) require institutions to reduce the risks arising in the short, medium and long term from ESG factors, including those arising from the process of adjustment and from transition trends in the context of the relevant Union, Member States or third-country legal and regulatory objectives, through adjustments to their business strategies, governance and risk management for which a reinforcement of the targets, measures, and actions included in their plans to be prepared in accordance with Regulation 64(2) to (4D) could be requested;

• (n) require institutions to undertake stress testing or scenario analysis to assess risks arising from crypto-asset exposures and from the provision of crypto-asset services.”.

Amendment of Regulation 92A of Principal Regulations

48.

• (a) in paragraph (8), by the substitution of “pursuant to paragraphs (3) to (6)” for “pursuant to paragraph (3)”, and

• (b) by the insertion of the following paragraphs after paragraph (16):

• “(17) Where an institution becomes bound by the output floor laid down in Article 92(3) of the Capital Requirements Regulation, the following shall apply:

  • (a) the nominal amount of additional own funds required by the Bank in accordance with Regulation 92(2)(a) to address risks other than the risk of excessive leverage is not to increase as a result of the institution becoming bound by the output floor;

  • (b) the Bank shall, without delay, and in any event no later than the end date of the next review and evaluation process, review the additional own funds it required from the institution in accordance with Regulation 92(2)(a) and remove any parts thereof that would double-count the risks that are already fully covered by the fact that the institution is bound by the output floor;

  • (c) as soon as the Bank has completed the review referred to in subparagraph (b), subparagraph (a) shall no longer apply.

• (18) For the purposes of this Regulation, Regulations 121, 122, 123 and Regulations 123A to 123N, an institution shall be considered as bound by the output floor when the institution’s total risk exposure amount calculated in accordance with Article 92(3), first subparagraph, of the Capital Requirements Regulation exceeds its un-floored total risk exposure amount calculated in accordance with Article 92(4) of that Regulation.

• (19) For the purposes of paragraphs (3) to (7), as long as an institution is bound by the output floor, the Bank shall not impose an additional own funds requirement that would double-count the risks that are already fully covered by the fact that the institution is bound by the output floor.”.

Amendment of Regulation 92B of Principal Regulations

49.

• “(6A) Where an institution becomes bound by the output floor, the Bank may review its guidance on additional own funds communicated to that institution to ensure that its output floor calibration remains appropriate.”.

Amendment of Regulation 94 of Principal Regulations

50.

• “(1) The Bank may –

  • (a) require institutions to publish the information referred to in Part Eight of the Capital Requirements Regulation more frequently than required by Articles 433 to 433c of that Regulation,

  • (b) set deadlines for institutions, other than a small and non-complex institution, to submit disclosure information to the EBA for its publication on the EBA website for centralised disclosures, and

  • (c) require an institution to use specific media and locations for publications, referred to in paragraph (a), other than the EBA website for centralised disclosures, or the financial statements of institutions.”.

Scope of application to investment firm groups

51.

“98A. (1) This Chapter applies to investment firm groups, as defined in Article 4(1), point (25), of Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019⁴⁸ , where at least one investment firm in that group is subject to the Capital Requirements Regulation pursuant to Article 1(2) or (5) of Regulation (EU) 2019/2033.

• (2) This Chapter does not apply to investment firm groups where no investment firm in that group is subject to the Capital Requirements Regulation pursuant to Article 1(2) or (5) of Regulation (EU) 2019/2033.”.

Amendment of Regulation 109 of Principal Regulations

52.

Amendment of Regulation 123 of Principal Regulations

53.

• (a) in paragraph (3) –

• (i) in subparagraph (b), by the substitution of “reviewed by the Bank at least annually;” for “reviewed by the Bank at least annually.”, and

• (ii) by the insertion of the following subparagraph after subparagraph (b):

• “(c) where an O-SII becomes bound by the output floor, the Bank shall review, by a date no later than the date of the annual review referred to in subparagraph (b), the institution’s O-SII buffer requirement in order to ensure that its calibration remains appropriate.”, and

• (b) by the insertion of the following paragraph after paragraph (12A):

• “(12B) For the purpose of paragraphs (12) and (12A), where the decision to set a systemic risk buffer, O-SII buffer or G-SII buffer results in a decrease or no change from any of the previously set rates, the procedure referred to in paragraph (2A) shall not apply.”.

Amendment of Regulation 123B(2) of Principal Regulations

54.

Amendment of Regulation 123G of Principal Regulations

55.

• (a) in paragraph (b), by the substitution of “not less than once in every two years,” for “not less than once in every two years, and”,

• (b) by the substitution of the following for paragraph for paragraph (c):

• “(c) not use the systemic risk buffer to address:

• (i) risks that are covered by Regulations 118 to 123,

• (ii) risks that are fully covered by the calculation set out in Article 92(3) of the Capital Requirements Regulation, and”, and

• (c) by the insertion of the following paragraph after paragraph (c):

• “(d) where a systemic risk buffer applies to the total risk exposure amount of an institution and that institution becomes bound by the output floor, the Bank shall review, by a date no later than the date of the review referred to in paragraph (b), the institution’s systemic risk buffer requirement in order to ensure that its calibration remains appropriate.”.

Amendment of Regulation 123J of Principal Regulation

56.

• (a) in paragraph (1), by the substitution of “the opinion of the European Commission and of the ESRB” for “the opinion of the European Commission”,

• (b) by the deletion of paragraph (3),

• (c) in paragraph (4) –

• (i) by the deletion of subparagraph (a), and

• (ii) by the substitution of the following subparagraph for subparagraph (c):

• “(c) the opinion provided by the Commission and the ESRB on foot of the request referred to in paragraph (1) is negative.”,

and

• (d) by the insertion of the following paragraph after paragraph (5):

• “(6) For the purpose of this Regulation, the recognition of a systemic risk buffer set by another Member State in accordance with Regulation 124 shall not count towards the systemic risk buffer rate or rates referred to in paragraph (1).”.

Amendment of Regulation 123K of Principal Regulations

57.

• (a) by the designation of that provision as paragraph (1), and

• (b) by the insertion of the following paragraph after paragraph (1):

• “(2) For the purpose of this Regulation, the recognition of a systemic risk buffer rate set by another Member State in accordance with Regulation 124 shall not count towards the systemic risk buffer rate or rates referred to in paragraph (1).”.

Amendment of Regulation 130 of Principal Regulations

58.

• (a) in paragraph (2)(c), by the substitution of “of fully meeting the combined buffer requirement, or, where applicable, the leverage ratio buffer requirement;” for “of meeting the combined buffer requirement;”,

• (b) in paragraph (3), by the substitution of “combined buffer requirements, or, where applicable, the leverage ratio buffer requirement” for “combined buffer requirements;”, and

• (c) in paragraph (4)(b) by the substitution of “Regulation 129 and Regulation 129B, as applicable” for “Regulation 129”.

PART 3 Amendment of other Enactments

Amendment of Central Bank Act 1942

59.

• (a) in section 23C –

• (i) in subsection (3), by the substitution of “For the purposes of subsection (2), the following periods do not count” for “The following do not count”,

• (ii) by the insertion of the following subsection after subsection (3):

• “(3A) The cumulative term in office of a person appointed as a Head of Function after 11 January 2026 shall not exceed a period of 14 years and any term so served shall count towards determining that period for the purposes of this subsection.”, and

• (iii) by the insertion of the following subsection after subsection (7):

• “(8) Where a person ceases to hold office as a Head of Function for any of the reasons in specified in paragraphs (d), (e), (f), (g) or (i) of subsection (6), the reason for the cessation of that person’s office shall be made public unless he or she objects to the publication.”,

• (b) in section 25, by the insertion of the following subsection after subsection (3):

• “(4) Where a person, for any of the reasons in paragraphs (e), (f), (g), (h) or (j) of subsection (2), ceases to be an appointed member of the Commission, the reason for the cessation of that person’s appointed membership of the Commission shall be made public unless he or she objects to the publication.”,

• (c) by the insertion of the following section after section 32B:

“Staff conflicts of interest

32BA. (1) The Bank shall have in place all the necessary arrangements to prevent conflicts of interest of employees of the Bank and of the members of the Commission.

• (2) The arrangements referred to in subsection (1) shall:

  • (a) be proportionate to the role and responsibilities of the employees of the Bank and the members of the Commission, and

  • (b) at a minimum, prohibit the employees of the Bank and the members of the Commission from –

    • (i) trading in financial instruments issued by or referenced to the institutions supervised by the Bank, and the direct or indirect parent undertakings, subsidiaries or affiliates of those institutions, with the exception of:

      • (I) instruments managed by third parties, provided that the owners of those instruments are precluded from intervening in the management of the portfolio;

      • (II) investments in collective investment undertakings, and

    • (ii) being hired by or accepting any kind of contract for the provision of professional services during a certain period (‘cooling-off period’) with any of the following:

      • (I) institutions with which the employee of the Bank or the member of the Commission has been directly involved for the purposes of supervision or decision-making, including the direct or indirect parent undertakings, subsidiaries or affiliates of those institutions;

      • (II) entities providing services to any of the entities referred to in clause (I), unless the employee of the Bank or the member of the Commission is strictly precluded from taking part in the provision of those services during the cooling-off period;

      • (III) entities conducting lobbying and advocacy activities directed at the Bank on matters for which the employee of the Bank or the member of the Commission was responsible during his or her employment or term of office.

• (3) The exceptions provided for in subsection (2)(b)(i)(I) and (II) shall only apply where the third parties and collective investment undertakings do not predominantly invest in instruments issued by or referenced to the institutions supervised by the Bank, or the direct or indirect parent undertakings, subsidiaries or affiliates of those institutions.

• (4) The cooling-off period shall start from the date on which direct involvement in the supervision of the entities referred to in subsection (2)(b)(ii)(I), ceases.

• (5) The Bank shall ensure that employees of the Bank and the members of the Commission have no access to confidential or sensitive information relating to those entities during the cooling-off period.

• (6) In the case of hirings by entities referred to in subsection (2)(b)(ii)(I) and (II), the length of the cooling-off period shall be –

  • (a) no less than three months for employees of the Bank directly involved in the supervision of entities referred to in paragraph (2)(b)(ii)(I), and

  • (b) no less than 12 months for members of the Commission.

• (7) In the case of hirings by entities referred to in subsection (2)(b)(ii)(III), the length of the cooling-off period shall be no less than three months for both employees of the Bank and members of the Commission.

• (8) Employees of the Bank who are subject to the prohibition provided for in subsection (2)(b)(ii) shall be entitled to appropriate compensation for that prohibition and the Bank shall decide on the appropriate form of such compensation.

• (9) The Secretary General of the Department of Finance and appointed members of the Commission who are subject to the prohibition provided for in subsection (2)(b)(ii) shall be entitled to appropriate compensation for that prohibition and the Minister shall decide on the appropriate form of such compensation.

• (10) The Bank shall ensure that employees and members of the Commission are required to submit, prior to being hired or appointed as the case may be and subsequently on an annual basis, a declaration of interest which declaration shall include information on their holdings in the form of stocks, equities, bonds, mutual funds, investment funds, mixed-type funds, hedge funds and exchange-traded funds, that may raise conflict of interest concerns.

• (11) Where an employee of the Bank or a member of the Commission owns, at the time of being hired or appointed or at any time thereafter, financial instruments that may give rise to conflicts of interest under this section, the Bank shall have the power to require on a case-by-case basis that those instruments be sold or disposed of within a reasonable timeframe.

• (12) The Bank shall have the power to allow, on a case-by-case basis, those employees or members of the Commission to sell or dispose of financial instruments that they owned at the time of being hired or appointed.

• (13) In this section, ‘members of the Commission’ excludes the Governor.”.

Amendment of Central Bank Act 1971

60.

• (a) in section 2(1), by the insertion of the following definition:

“ ‘third-country branch authorisation’ means an authorisation to establish a third-country branch under Regulation 9P(1) of the European Union (Capital Requirements) Regulations 2014 ( S.I. No. 158 of 2014 );”.

• (b) in section 7 –

• (i) in subsection (1), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”, and

• (ii) in subsection (6)(b), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (c) by the deletion of the following sections:

• (i) section 9A;

• (ii) section 9B;

• (iii) section 9C;

• (iv) section 9CA;

• (v) section 9CB,

• (d) in section 10 –

• (i) in subsection (1), by the deletion of “or an authorisation under section 9A(2)”,

• (ii) by the deletion of subsection (2A),

• (iii) in subsection (3) –

• (I) by the deletion of “or authorisation under section 9A(2),”,

• (II) in paragraph (a), by the deletion of “or authorisation under section 9A(2)” in each place that it occurs, and

• (III) by the substitution of the following paragraph for paragraph (c):

• “(c) the Bank shall in the case of a licence, before deciding to propose to the ECB to impose the condition or amend or add to the conditions of the licence, as the case may be, consider any representations duly made to it under this subsection in relation to the proposed imposition, amendment or addition, as the case may be, and where, after so considering, the Bank decides to propose an imposition, amendment or addition, as the case may be, that differs from that specified in the notification concerned, it shall not be necessary to give a new notification under this subsection if the difference results in the condition concerned being no more onerous than would be the case had the Bank decided to propose to the ECB to impose the condition or amend or add to the conditions of the licence, as the case may be, in accordance with the notification concerned.”,

• (e) in section 11(1)(b) –

• (i) in subparagraph (x)(II), by the substitution of “Article 92(2)(a) or 93 of the Capital Requirements Regulation” for “Regulation 92(2)(a) or 93 of the Capital Requirements Directive”,

• (ii) in subparagraph (xi), by the substitution of “( S.I. No. 158 of 2014 ),” for “( S.I. No. 158 of 2014 ), or”, and

• (iii) by the insertion of the following subparagraph after subparagraph (xii):

• “(xiii) meets all of the following conditions:

  • (I) it has been determined to be failing or likely to fail in accordance with Article 32(1), point (a), of Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014⁴⁹ or in accordance with Article 18(1), point (a), of Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014⁵⁰ ;

  • (II) the resolution authority considers that the condition set out in Article 32(1), point (b), of Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014⁵¹ or in Article 18(1), point (b), of Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014⁵² is met with respect to that credit institution;

  • (III) the resolution authority considers that the condition set out in Article 32(1), point (c), of Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014⁵³ or in Article 18(1), point (c), of Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014⁵⁴ is not met with respect to that credit institution.”,

• (f) in section 12 –

• (i) in subsection (1), by the substitution of “of the holders of third-country branch authorisations” for “of the holders of authorisations under section 9A”,

• (ii) in subsection (2), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”, and

• (iii) in subsection (3), by the substitution of “of the holders of third-country branch authorisations” for “of the holders of authorisations under section 9A”,

• (g) by the substitution of the following section for section 17:

“17. (1) The holder of a licence or third-country branch authorisation and each related body shall –

• (a) keep at an office or offices within the State such records as may be specified from time to time by the Bank, in the due discharge by the Bank of its functions, and

• (b) notify the Bank in writing of the address of the office or offices where those records are kept.

• (2) Different kinds of records may be specified under this subsection for different licence holders or holders of third-country branch authorisations and related bodies.

• (3) The requirement imposed by subsection (1) is additional to any other requirement imposed by law with respect to the keeping of records by the holder of a licence or third-country branch authorisation and by related bodies.

• (4) The holder of a licence or third-country branch authorisation and each related body shall keep the records referred to in subsection (1) for such period as the Bank notifies in writing to that holder.

• (5) The holder of a licence or third-country branch authorisation may keep its documents wholly or partly in a non-legible form so long as they are capable of being reproduced in a legible form.”,

• (h) in section 18 –

• (i) in subsection (1) –

• (I) in paragraph (a), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”, and

• (II) in paragraph (b), by the substitution of the following subparagraphs for subparagraphs (i) and (ii):

• “(i) a business of an associated company or related body of the holder of a licence or third-country branch authorisation, or

• (ii) a business in respect of which the person is, because of section 7(4)(b), exempt from being required to hold a licence or third-country branch authorisation, or”,

• (ii) in subsection (9), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”, and

• (iii) in subsection (10), in paragraph (a) of the definition of “relevant business”, by the substitution of “third-country branch authorisation” for “authorisation under section 9A” in each place that it occurs,

• (i) in section 19 –

• (i) in subsection (1), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”, and

• (ii) in subsection (2), by the substitution of “third-country branch authorisations” for “authorisations under section 9A”,

• (j) in section 20 –

• (i) in subsection (1), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”, and

• (ii) in subsection (2), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (k) in section 21 –

• (i) in subsection (1), by the substitution of the following definition for the definition of “prescribed circumstance”:

“ ‘prescribed circumstance’, in relation to the holder of a licence or third-country branch authorisation, means any of the following:

• (a) the holder has become or is likely to become unable to meet its obligations to its creditors;

• (b) the holder is not maintaining or is unlikely to be in a position to maintain adequate capital resources having regard to the volume and nature of the holder’s business;

• (c) the holder is failing or has failed to comply with a condition imposed in relation to the licence in accordance with section 10 or the third-country branch authorisation and the circumstances are such that the Bank considers that the stability and soundness of the holder are or will be affected by the failure;

• (d) the holder is conducting business in such a manner as to jeopardise and prejudice the security of deposits taken by it or the rights and interests of persons who made those deposits;

• (e) the holder and one or more than one other entities are under common control (whether or not any such other entity holds a licence or third-country branch authorisation) and the Bank is of the opinion that the common control is not in the interest of persons who keep deposits with the holder;”,

• (ii) in subsection (2), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (iii) in subsection (3)(c), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (iv) in subsection (4)(a), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (v) in subsection (5), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (vi) in subsection (7), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (vii) in subsection (8), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (viii) in subsection (9), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”, and

• (ix) in subsection (11), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (l) in section 22 –

• (i) in subsection (1), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (ii) in subsection (2), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”, and

• (iii) in subsection (2A), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (m) in section 25 –

• (i) in subsection (1), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”, and

• (ii) in subsection (2), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (n) in section 26 –

• (i) in subsection (1), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (ii) in subsection (2), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (iii) in subsection (3), by the substitution of “third-country branch authorisation” for “authorisation under section 9A” in each place that it occurs, and

• (iv) in subsection (4), by the substitution of “third-country branch authorisations” for “authorisations under section 9A”,

• (v) in subsection (6) –

• (I) in paragraph (a), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (II) in paragraph (b), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”, and

• (III) in paragraph (c), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (o) in section 27(2)(a), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (p) in section 28(1), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (q) in section 31 –

• (i) in subsection (1), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”,

• (ii) in subsection (2), by the substitution of “third-country branch authorisation” for “authorisation under section 9A”, and

• (iii) in subsection (3), by the substitution of “third-country branch authorisation” for “authorisation under section 9A” in each place that it occurs,

• (r) by the insertion of the following section after section 31A:

“Exemption of third-country branches

31AA. (1) This Part shall not apply to authorised third-country branches.

• (2) In subsection (1), ‘authorised third-country branch’ means a third-country branch authorised under Regulation 9P(1) of the European Union (Capital Requirements) Regulations 2014 ( S.I. No. 158 of 2014 ).”,

• (s) in section 31R –

• (i) in subsection (1)(b), by the insertion of “established in the Union, including any of their branches and subsidiaries established in a third-country,” after “all undertakings in the group”, and

• (ii) by the insertion of the following subsections after subsection (7):

• “(7A) By way of derogation from subsection (1), based on the application received in accordance with subsection (1) and the information received in accordance with Article 95a of the Markets in Financial Instruments Directive, the Bank may waive the requirement to obtain a licence.

• (7B) Upon receiving a waiver request, the Bank shall notify the EBA thereof and the EBA shall issue an opinion on that waiver request within one month of receiving the notification.

• (7C) The Bank shall take a decision on the waiver request, taking into account the EBA opinion and at least the following elements:

  • (a) where the undertaking is part of a group, the organisational structure of the group, the booking practices prevailing within the group and the allocation of assets across the group entities;

  • (b) the nature, size and complexity of the activities carried out by the undertaking in the State and in the Union as a whole;

  • (c) the importance of, and systemic risk posed by, the activities carried out by the undertaking in the State and in the Union as a whole.

• (7D) Where a decision of the Bank under subsection (7A) deviates from the opinion provided by the EBA, the Bank shall state the reasons for the deviation in its decision.

• (7E) The Bank shall notify its decision to the undertaking concerned and to the EBA and the EBA shall publish that decision, together with the opinion of the EBA, on the EBA website.

• (7F) The Bank shall reassess decisions made under subsection (7A) every three years.”.

Amendment of Regulation 28(2) of European Union (Deposit Guarantee Schemes) Regulations 2015

61.

GIVEN under my Official Seal,

10 July, 2026.

SIMON HARRIS,

Minister for Finance.

Footnotes