The European Central Bank (ECB) is streamlining its assessment of banks’ standardised capital and securitisation operations, cutting approval times from three months to just two weeks starting January 2026. The new fast-track procedures will allow banks to receive quicker responses for share buybacks, capital repurchases, and reductions in capital requirements following significant risk transfers, while ensuring all regulatory standards remain fully applied.
The capital fast track applies to operations with limited impact on banks’ capital ratios and sufficient capital buffers, while the securitisation fast track covers standardised portfolios with low risk exposure. The ECB will maintain prudential oversight to prevent excessive risk-taking and ensure banks do not overly rely on capital benefits from securitisations. By accelerating routine approvals, supervisors can focus on more complex cases, enhancing efficiency and safeguarding financial stability.
