Key data
| Regulation | Decision (EU) 2026/2038 of the European Central Bank — ECB/2026/21 |
|---|---|
| Publication | 11 September 2026 |
| Entry into force | 21 August 2026 |
| Affected parties | Significant banking groups supervised by the ECB |
| Category | European Regulation |
| Year | 2026 |
If your entity is a significant banking group supervised by the ECB, the contact who approves your restructuring plan has just changed. Decision ECB/2026/21, published on 11 September 2026 and effective from 21 August 2026, delegates to certain positions at the European Central Bank the power to adopt joint decisions on the evaluation of group restructuring plans.
The stated objective is to streamline prudential supervision procedures within the framework of the Single Supervisory Mechanism (SSM). The measure does not modify the substantive requirements that restructuring plans must meet, but rather reorganizes who has the authority to approve them within the ECB.
What does this regulation establish?
Decision ECB/2026/21 introduces a formal delegation of powers within the ECB. Until now, the adoption of joint decisions on restructuring plans for banking groups fell to higher hierarchical levels of the institution. With this decision, that power is transferred to certain designated supervisory positions.
The key elements established by the regulation are:
- Object of delegation: the power to adopt joint decisions on the evaluation of restructuring plans for supervised banking groups.
- Reference framework: the Single Supervisory Mechanism (SSM), which is the European banking supervision system in which the ECB and national competent authorities participate.
- Purpose: to streamline prudential supervision procedures without altering the material standards required of entities.
- Nature of restructuring plans: key instruments to ensure the resilience of financial groups in crisis situations.
- What does NOT change: the material standards and content requirements that restructuring plans submitted by entities must meet.
| Aspect | Before ECB/2026/21 | After ECB/2026/21 |
|---|---|---|
| Who approves restructuring plans | Higher hierarchical levels of the ECB | Supervisory positions delegated by the ECB |
| Material standards required of entities | Established by the SSM | No changes — remain intact |
| Speed of procedure | More centralized process | Greater operational efficiency expected |
| Contact for banking groups | Senior ECB bodies | Designated delegated teams |
Economic and operational impact
This decision does not generate additional direct costs for financial entities nor does it modify supervision fee amounts. Its impact is fundamentally operational and internal management:
- Efficiency in timelines: by delegating approval to positions closer to the supervisory process, it is expected that the timelines for evaluation and approval of restructuring plans will be reduced.
- Update of contacts: teams managing supervisor relations (regulatory affairs, compliance, finance department) must identify the new delegated positions responsible for their group.
- No change in content requirements: restructuring plans must continue to meet exactly the same material standards as before this decision. There is no room to relax the quality or depth of plans.
- Risk of miscommunication: if the banking group's internal teams do not update their liaison procedures, they may direct communications or documentation to incorrect channels, causing delays in approval.
Who does it affect?
- Significant banking groups directly supervised by the ECB within the Single Supervisory Mechanism.
- ECB supervision teams that participate in the evaluation and adoption of joint decisions on restructuring plans.
- Chief Financial Officers (CFOs) and regulatory affairs managers of affected banking groups, who manage the relationship with the European supervisor.
- Recovery and resolution planning teams within financial groups, responsible for preparing and updating restructuring plans.
- Legal advisors and consultants specialized in European banking supervision who support significant entities.
It does not affect smaller credit institutions supervised exclusively by national competent authorities, nor non-financial companies.
Practical example
A significant banking group headquartered in Spain, directly supervised by the ECB, has scheduled the annual review of its group restructuring plan for the fourth quarter of 2026.
Until the entry into force of Decision ECB/2026/21 (21 August 2026), the group's regulatory affairs team directed documentation and negotiations on the plan to the senior ECB bodies with competence to adopt the joint decision.
With the new delegation, that same team must now identify which delegated supervisory positions have been assigned competence for their specific group, and redirect all liaison to those new contacts. The content of the restructuring plan does not change: it must continue to meet the same material standards of the SSM. What changes exclusively is to whom it is presented and who signs the joint decision approving it.
If the team does not update its internal procedures and continues using the previous channels, it may cause delays in the processing of the plan, with the resulting impact on the group's regulatory timelines.
What should companies do now?
- Identify the new delegated contacts at the ECB: the regulatory affairs or compliance team should contact the ECB to learn which supervisory positions have delegated competence for their specific group following Decision ECB/2026/21.
- Update internal liaison procedures: review and update internal communication protocols with the European supervisor, replacing previous contacts and channels with the newly designated ones.
- Verify the restructuring plan review schedule: if the group has a plan review or submission scheduled for 2026, confirm that timelines and procedures align with the new authorization chain.
- Maintain the material standards of the plan unchanged: the delegation does not modify content requirements. Do not reduce the quality or depth of restructuring plans.
- Inform management and the board: communicate internally the procedural change so that senior management is aware of the new authorization chain and confusion is not generated in future interactions with the supervisor.
Frequently asked questions
What is Decision ECB/2026/21 and what exactly does it delegate?
It is Decision (EU) 2026/2038 of the European Central Bank, of 21 August 2026, which delegates to certain ECB positions the power to adopt joint decisions on the evaluation of restructuring plans for significant banking groups supervised. Its objective is to streamline prudential supervision procedures within the framework of the Single Supervisory Mechanism.
Do the requirements that my banking group's restructuring plan must meet change?
No. Decision ECB/2026/21 does not modify the material standards required of entities. Restructuring plans must continue to meet exactly the same content and quality requirements as before. The only thing that changes is the ECB's internal authorization chain: who has the delegated competence to adopt the joint decision approving it.
From what date is this delegation applicable?
Decision ECB/2026/21 entered into force on 21 August 2026, although it was published in the EU Official Journal on 11 September 2026. Therefore, any restructuring plan evaluation procedure initiated from that date must follow the new delegated authorization chain.
What banking groups are affected by this decision?
Significant banking groups directly supervised by the ECB within the Single Supervisory Mechanism (SSM) are affected. It does not affect less significant entities supervised exclusively by national competent authorities.
What should I do if my group needs to submit or negotiate a restructuring plan in 2026?
You must identify which new delegated supervisory positions of the ECB are responsible for your group, update internal liaison procedures, and redirect documentation and communications to those new contacts. The content of the plan does not change, but the channel and the person adopting the joint decision approving it does.
Official source
Consult complete regulation at official source
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202602038
