The European financial sector is preparing for major regulatory changes in 2026, as the European Supervisory Authorities (ESAs) and the European Commission (EC) set out a detailed agenda focusing on prudential standards and digital operational resilience.
A central part of this agenda is managed by the European Banking Authority (EBA), which will be responsible for 269 deliverables in 2026. Of these, 143 have either legal or self-imposed deadlines. The EBA’s anti-money laundering supervision duties are being transferred to the new Anti-Money Laundering Authority (AMLA), reflecting a shift toward greater efficiency and expanded digital mandates.
Key priorities include implementing the revised Capital Requirements Regulation (CRR3) and Directive (CRD6). The EBA plans to finalize technical standards and guidelines related to credit risk, operational risk capital requirements, and reporting standards linked to the Output Floor by the end of 2026. Additionally, work continues on streamlining regulatory processes through Level 2 and Level 3 mandates, aiming to enhance proportionality in supervisory reviews.
Efforts are also underway to reduce reporting costs for banks by identifying redundant reporting requirements with national authorities. This initiative aims for a 25% reduction in reporting expenses and includes developing a common data dictionary for an integrated banking sector framework.
Risk management remains a priority as well. The EBA is preparing for the EU-wide stress test scheduled for 2027 by improving methodologies that incorporate climate risk factors and assess geopolitical threats.
Digital oversight is expanding under regulations such as the Digital Operational Resilience Act (DORA) and Markets in Crypto-Assets Regulation (MiCA). Under DORA, the EBA will directly oversee critical third-party ICT service providers. For MiCA, it will supervise crypto-asset issuers. A new validation function for Initial Margin models under EMIR will be established, with public launch planned for early 2026.
The three ESAs—EBA, EIOPA, and ESMA—will jointly ensure effective oversight of critical third-party ICT providers designated at the end of 2025. In 2026, they plan risk assessments that could result in recommendations or follow-ups specific to each provider. Other joint initiatives include drafting guidelines on high-level principles mandated under CRD6 by January 2026; starting work based on proposals reviewing securitization regulation; drafting technical standards related to External Credit Assessment Institutions; and supporting implementation of phases of the European Single Access Point.
Beyond regulatory compliance, innovation is another focus area for EU authorities. The EC intends to propose several legislative acts in early 2026:
– The Cloud and AI Development Act aims to bolster Europe’s position in cloud computing and artificial intelligence.
– The European Innovation Act seeks to simplify rules for startups while improving access to finance.
– The Quantum Act intends to unify investment into quantum technologies like computing, sensing, and communication across Europe.
These measures reflect a convergence between prudential requirements and digital strategies across Euro area institutions. As technology becomes increasingly central within finance—both as an enabler and driver—the competitive future of EU finance depends on integrating robust digital systems with core capital management practices.
More information about these programs can be found at:
EBA work program
ESAs’ work program
EC work program
