Change fatigue could dim EBA’s credit risk simplicity drive

Revisions may be kept to a minimum as short-term implementation burden weighs on banks

Banks’ enthusiasm for an initiative by the European Banking Authority (EBA) to simplify the credit risk capital framework may be dulled by concerns over the short-term implementation costs needed to reap long-term operational savings. Lars Overby, head of risk-based metrics at the EBA, says whatever the eventual course of action, the agency is seeking “common agreement” among supervisors and banks