Banking Package

Transposition and Implementation of the Banking Package

Reference is made to the latest issue of the Regulatory Update. The MFSA is progressing with the transposition and implementation of the provisions of the Capital Requirements Directive VI (the ‘CRDVI’) and the Capital Requirements Regulation III (the ‘CRRIII’) and will be informing stakeholders once all legislative instruments are published.

New Regulations in the Official Journal of the EU

At the end of July, the Commission Implementing Regulation (EU) 2026/1757 establishing the framework for reporting by third-country branches (TCBs) was published in the Official Journal. The Regulation introduces two distinct sets of reporting templates which also reflect a proportionate approach, whereby Class 1 TCBs, considered to pose higher risks, are subject to more granular reporting requirements than Class 2 branches.  The Regulation also specifies the reporting reference dates, reporting submission deadlines, and the accounting standards to be applied by TCBs when preparing and submitting their regulatory returns.

TCBs are required to submit the information prescribed by the Regulation using the data exchange formats and representations specified by the Authority. They must also comply with the data point definitions and validation rules set out in the IT solutions made available on the EBA’s website.  The Authority will be engaging with the local TCBs to ensure that the reporting framework is properly established, implemented, and fully operational within the required timelines.

Furthermore, the Commission Implementing Regulation (EU) 2026/1872 amending the technical standards set out in lmplementing Regulation (EU) 2016/2070 on supervisory benchmarking was published in the Official Journal on 12 August 2026. The original Regulation published in 2016 was updated following changes introduced by CRDVI, namely the inclusion of ESG risk requirements and the revised supervisory benchmarking requirements. The update also takes into account the delayed application of the Fundamental Review of the Trading Book (FRTB) thereby introducing some changes to the scope of the benchmarking exercise related to market risk.

Circulars Issued and Published by the MFSA

Reference can be made to Circulars applicable to credit institutions as published on the dedicated MFSA webpage. Institutions are expected to keep note of and address any MFSA Circulars and publications applicable to them.