Amendments to EBA Guidelines on the application of the definition of default EBA/GL/2016/07 – applicable from 19 October 2026
On 7 May 2026, the European Banking Authority (EBA) published the final Report on the Guidelines EBA/GL/2026/05 which amend the Guidelines EBA/GL/2016/07 on the application of the definition of default under Article 178 of Regulation (EU) No 575/2013. The Guidelines amend the previous EBA Guidelines EBA/GL/2016/07.
The Financial Supervisory Authority has confirmed that it will comply with the Guidelines.
In accordance with Article 16(3) of the EBA Regulation1, financial institutions shall make every effort to comply with the EBA Guidelines.
Subject matter
On 7 May 2026, the European Banking Authority (EBA) published the final Report on the Guidelines EBA/GL/2026/05 which amend the Guidelines EBA/GL/2016/07. The Report introduces targeted amendments to the default recognition of specific non-recourse factoring arrangements. The updated Guidelines also include some minor technical updates to align with amendments introduced by the Capital Requirements Regulation (CRR3). Additionally, the Report confirms that the 1% threshold used to assess net present value (NPV) loss in debt restructurings involving a diminished financial obligation remains appropriate for prudential default recognition.
Date of application
The Guidelines will apply from 19 October 2026.
For further information, please contact
Heli Hyykky, Senior Inspector, tel. +358 9 183 5240 or heli.hyykky(at)fiva.fi
Appendix
See also
Guidelines of the European Supervisory Authorities
1EBA Regulation (EU) No 1093/2010