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By Jean-Philippe PETERS, Partner and Maria Josefin JOHANSSON-JUUP, Senior Manager at Deloitte Luxembourg
Entering a new era of prudential supervision
On 11 January 2026, a subtle yet profound shift will occur in the prudential supervision of European banks. Under the revised Article 76(2) of the Capital Requirements Directive VI(1), every EU credit institution will be required to prepare specific plans that include quantifiable targets and processes to monitor and address the financial risks arising in the short, medium and long term from environmental, social and governance (ESG) factors. These plans are usually referred to as the prudential transition plan.
This requirement, further elaborated in the EBA’s...
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