Brussels, 30 April 2026 – The European Banking Federation’s (EBF) Key Messages on  EBA Consultation on Systemic Risk Buffer

• We urge for a  fundamental rethink of whether a climate-related Systemic Risk Buffer is the right approach for climate risk and whether it is the right time for the revision given the focus on regulatory simplification and  the forthcoming European Commission report on competitiveness  of the financial sectors – which includes an assessment of the macroprudential framework. A novel, complex buffer with untested calibration sends a contradictory signal to markets.

• Capital buffers designed for structural systemic shocks are in our view not appropriate to address emerging  risks like those related to climate change. Climate-related financial risks are characterised by deep uncertainty and long time horizons that do not fit the SyRB’s design logic. The climate-risk exposure embedded in a bank’s credit portfolio is inherently bank-specific and more appropriate to be addressed under Pillar 2 framework.  A climate SyRB also risks double counting capital already held under existing supervisory requirements and risks penalizing industries and areas that are in most need of transition and resilience building.

• If climate-related macroprudential tools are to be explored at all, the process must prioritise EU-wide alignment, risk sensitiveness,  clear activation criteria and  robust comparable and available datasets. Any future framework must also pass a clear proportionality test weighing costs against prudential benefit.

Denisa Avermaete, Head of Sustainable Finance,D.Avermaete@ebf.eu
Jānis Priekulis, Senior Policy Adviser – Sustainable Finance, j.priekulis@ebf.eu