Article 519 e Operational risk

By 10 January 2028, EBA shall report to the Commission on the following:

the use of insurance in the context of the calculation of the own funds requirement for operational risk;

whether the recognition of insurance recoveries might lead to regulatory arbitrage by reducing the annual operational risk loss without a commensurate reduction in the actual operational loss exposure;

whether the recognition of insurance recoveries has a different impact on the appropriate coverage of recurring losses and of potential tail losses;

the availability and quality of data used by institutions when calculating their own funds requirement for operational risk.

On the basis of that report, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 10 January 2029.