Financial Regulation
EBA: EU Banks Improve Risk Calculation Consistency
The European Banking Authority (EBA) has published its annual assessment of how banks use internal models to calculate capital requirements. The 2025 report finds continued progress in the consistency and reliability of these calculations for both credit and market risk. This work is crucial for ensuring a level playing field and preventing banks from underestimating their risks, which underpins the stability of the EU's financial system. The EBA will continue to monitor these models to reduce unwarranted variability.
EU's banking watchdog confirms banks are getting better at calculating risk, a key to financial stability.