On 16 June 2025, the EBA published two final reports on draft technical standards relating to operational risk under the Capital Requirements Regulation (575/2013) (CRR).

Final report (EBA/RTS/2025/02 / EBA/ITS/2025/06)

This report addresses mandates under Articles 314 and 315 of the CRR related to operational risk and the Business Indicator (BI). The BI is a financial statement-based proxy for operational risk, introduced as part of the revised framework for operational risk capital requirements under the CRR. The report provides draft regulatory technical standards and implementing technical standards to ensure clarity, consistency and harmonisation in the calculation and application of the BI. The BI is based on three components: an interest, leases and dividends component (ILDC), a service component (SC) and a financial component (FC). Items to be excluded from the calculation of the BI are set out in the report, which include administrative expenses, staff expenses, depreciation of tangible assets, amortisation of intangible assets and impairment or reversal of impairment. 

The report also addresses operational challenges such as handling extraordinary items, mapping BI components to FINREP items and alignment with accounting and prudential standards. It introduces a simplified hierarchy for BI adjustments following mergers and acquisitions and proposed a materiality threshold for disposals to streamline the administrative process.

The draft RTS and ITS will be submitted to the European Commission for endorsement and will subsequently undergo scrutiny by the European Council and Parliament before publication in the Official Journal of the European Union.

Final report (EBA/ITS/2025/05)

This report focuses on supervisory reporting requirements related to operational risk under Article 430(7) of Regulation (EU) No 575/2013 (CRR). The report introduces amendments to the operational risk reporting framework to assess compliance with the operational risk own funds requirements and complements the reporting requirements already in place by requesting further details on the calculation of the business indicator components. Previously, the CRR2 contained different approaches for the computation of regulatory capital on operational risk. Under the CRR3, the approaches were replaced by one single, non-model-based approach called the business indicator component (BIC) approach. 

The main changes introduced to the operational risk reporting framework include use of new reporting templates, simplification of reporting requirements and alignment with other regulatory products. The EBA acknowledges that compliance with new reporting requirements creates challenges for reporting institutions, including new data needed for past periods, retroactive adjustments and others.

After the submission of the final draft ITS to the Commission for adoption, and publication of the final report and IT tools, the EBA will develop its data point model (DPM), XBRL taxonomy and validation rules based on the final draft ITS. This technical package will be published as a draft in Q3 2025, with the final technical package to follow in Q4 2025.