The EBA publishes revised Guidelines on internal governance, delivering greater proportionality and simplification for banks

For compliance teams, this means reviewing governance frameworks to align with updated expectations on management body responsibilities, risk management, and internal controls. While the guidelines aim to reduce unnecessary burdens, firms must demonstrate robust and proportionate governance. Key actions include conducting a gap analysis, updating policies and procedures, and clarifying board roles.

Firms should monitor national implementation timelines and consider interactions with other CRD VI requirements. The proportionality focus may allow smaller banks to streamline structures, but all institutions must evidence sound governance. Overall, a moderate impact requiring focused changes.