EBA: Pillar 1 enhancements to capture environmental and social risks

The European Banking Authority (EBA) published on the 12th of October a Report on the role of environmental and social risks in the prudential framework of credit institutions and investment firms. Taking a risk-based approach, the Report assesses how the current prudential framework captures environmental and social risks.

Environmental and social risks are changing the risk profile for the banking sector and are expected to become more prominent over time.

In this alert, you will read more about the EBA short-term recommendations regarding the implementation of CRR3/CRD6 and conclusions.