Regulatory Watch Monday — EU Finance Regulation

Week of March 30, 2026

Bank Resolution & Depositor Protection

March 23, 2026 — European Parliament adopted new rules expanding EU bank failure legislation:

• Scope expansion: Protection now includes small and medium-sized banks when in the public interest
• Enhanced protections: Depositor coverage extended beyond €100,000 to certain real estate-linked deposits up to €2.5M
• Market-based solutions: Push for private funding to reduce taxpayer reliance, progress toward EDIS
• Timeline: Enters into force 20 days after Official Journal publication; applies from 24 months later

DORA & Operational Resilience

March 27, 2026 — ESAs released Spring 2026 Joint Committee risk update:

• Highlights geopolitical tensions and rising private finance risks
• Relevant to ICT resilience requirements under DORA for financial entities

Basel Implementation

The European Commission is preparing legislation to temporarily offset capital requirement increases from FRTB (Fundamental Review of the Trading Book), aiming to maintain EU banks' competitiveness against US and UK peers.

PSD2 / MiFID / E-Money

• No major PSD2 or MiFID updates reported this week
• PSD3 expected Q2 2026: Will repeal EMD2, merging e-money provisions into PSD3
• EMIs becoming sub-category of Payment Institutions with stronger safeguarding requirements
• Sanctions update (March 13): EU FAQs prohibit e-money issuance and certain PSD2 services to Russian entities/nationals

Banking Disclosures

March 27, 2026 — Commission Implementing Regulation (EU) 2026/722 amends disclosure standards for non-small, non-complex institutions' use of the EBA single access point. Effective April 16, 2026.

Quick Hits

• FDI Screening: Revisions endorsed February 2026 expand coverage to financial entities (CCPs, large institutions); applies 18 months after entry into force
• Digital Euro: ECB targeting Q3 2026 Pontes DLT launch; legislative votes planned May 2026
• AML Package: AMLA issuing RTS in 2026, ahead of full 2027 implementation

This week's finding: No major PSD2/MiFID activity, but bank resolution reforms and PSD3 preparations are the key themes. Watch for PSD3 publication in Q2 2026.

Regulatory Watch | EU Finance