10 September 2026
Schoenherr publication
czech republic
to the point: financial regulation | 7-8/2026
Welcome to our to the point newsletter. Every month, we look back at the most relevant developments in financial regulation in the CEE region.
In this edition, you will get a mix of updates:
- The European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) published a statement calling for a cross-sectoral, risk-based and consistent supervisory approach to address ICT and cyber risks arising from the use of frontier AI models in the EU financial sector. For financial entities, the statement reinforces the expectation that they have robust governance and risk management frameworks in place to prevent, detect and manage cyber and operational risks associated with frontier AI, including through appropriate oversight of their reliance on AI technologies and ICT third-party providers. The statement does not introduce new binding obligations itself, but provides supervisory guidance on how existing regulatory requirements, including DORA, should be applied to these emerging risks. Financial entities should therefore expect increased supervisory focus on their governance and risk-management arrangements concerning frontier AI, while competent authorities are encouraged to use the statement as a basis for consistent supervisory dialogue. The ESAs also highlight ongoing and planned DORA oversight of critical ICT third-party providers to address risks associated with frontier AI models.
- The European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) published a final report proposing amendments to the bilateral margin requirements under Delegated Regulation (EU) 2016/2251. The proposed changes would simplify the requirements for counterparties subject to initial margin obligations under EMIR whose aggregate initial margin exposure is below the €8 billion threshold. In practice, eligible counterparties would no longer be required to exchange initial margin in respect of either new or existing uncleared OTC derivative contracts, rather than being exempt only for new contracts while remaining subject to the requirement for existing contracts. The proposed amendments would therefore reduce the compliance and operational burden for affected counterparties and facilitate the phase-out of initial margin requirements for smaller market participants, while also aligning the EU framework more closely with approaches applied in other jurisdictions. The draft RTS have been submitted to the European Commission for endorsement and will subsequently be subject to scrutiny by the European Parliament and the Council before publication in the Official Journal.
- The ESMA has issued its Final Report on Regulatory Technical Standards (RTS) concerning the admission criteria elements for central counterparties (CCPs) following the review of the European Market Infrastructure Regulation (EMIR 3). The new RTS provide guidance on the elements that CCPs must take into account when setting their admission criteria for clearing members, including specific considerations for non-financial counterparties (NFCs) and sponsored membership models. The RTS do not establish the admission criteria themselves but define the factors that CCPs must assess when developing their requirements. For obliged entities, in particular CCPs and their clearing members, the rules introduce a more detailed framework for assessing access to clearing arrangements and may require adjustments to internal admission policies and procedures. NFCs seeking access to CCP clearing services may be affected by additional considerations linked to their eligibility and participation requirements. The RTS will now be submitted to the European Commission for endorsement and will subsequently be reviewed by the European Parliament and the Council before becoming applicable.
- The EBA has issued its final draft Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS) on material acquisitions, transfers of assets or liabilities, mergers and divisions involving credit institutions and financial holding companies under the Capital Requirements Directive (CRD). The new standards establish a harmonised framework for supervisory assessments of significant corporate transactions by introducing common information requirements, assessment methodologies and procedures for notifications. For obliged entities, particularly credit institutions and (mixed) financial holding companies undertaking material acquisitions, asset or liability transfers, mergers or divisions, the rules provide greater clarity on the information that must be submitted to supervisory authorities and the applicable notification processes. The framework is intended to reduce regulatory uncertainty and ensure a consistent prudential assessment approach across the EU, while also reducing administrative burdens through proportionality measures, such as simplified requirements for intra-group transactions and smaller entities. Competent authorities will also have clearer procedures and timelines for cooperation when multiple supervisors are involved. The standards further address situations where a single transaction triggers multiple CRD notification obligations by introducing harmonised terminology and common requirements, thereby improving efficiency and consistency in supervisory procedures. The RTS and ITS were developed as part of the implementation of CRD6 and will contribute to a more predictable regulatory environment for banking consolidation and cross-border transactions within the EU.
- The European Commission has published a Communication on the competitiveness of the EU banking sector, setting out planned legislative and policy measures to strengthen the sector's competitiveness while preserving financial stability. The Communication identifies market fragmentation, disproportionate regulatory complexity, and barriers to cross-border banking as the main obstacles to a more competitive banking sector and announces legislative proposals by the first quarter of 2027 to simplify the prudential framework. For banks, the planned reforms mean a gradual reduction of unnecessary regulatory and reporting burdens through greater proportionality, simplification of capital and macroprudential requirements, more transparent Pillar 2 supervisory expectations, increased harmonisation of supervisory rules, and further automation of regulatory reporting. Smaller and less complex institutions may benefit from adjusted thresholds and more proportionate requirements reflecting their size and business model. The Commission also intends to facilitate cross-border banking by reducing prudential barriers, enabling more efficient allocation of capital and liquidity within banking groups, simplifying the deposit insurance framework, and addressing non-prudential obstacles such as AML and consumer protection rules.
- The EBA has revealed its final Guidelines on the authorisation of third-country branches (TCBs) of credit institutions under the revised Capital Requirements Directive (CRD6). The Guidelines establish a harmonised framework for applications by third-country credit institutions seeking to establish branches in EU Member States and set out the required information, assessment criteria, application forms, templates and procedures to be followed by applicants and competent authorities. For obliged entities, namely third-country credit institutions applying for authorisation and the competent supervisory authorities assessing such applications, the Guidelines introduce more detailed requirements regarding the authorisation process, including the obligation to provide comprehensive information and a non-opposition statement from the supervisory authority of the third-country head undertaking. The new framework aims to ensure a consistent supervisory approach and strengthen the safety and soundness of third-country branches operating in the EU. The Guidelines form part of the broader CRD6 regime introducing minimum harmonised requirements for TCBs, including rules on prudential requirements, capital endowment, liquidity, booking arrangements, internal governance, reporting obligations and supervisory cooperation. The framework will be further supplemented by additional EBA regulatory and supervisory measures, including revised internal governance requirements expected by the end of 2026.
- The Ministry of Finance has submitted a draft amendment to Act No. 277/2009 Coll., on Insurance, for interministerial consultation. The main purpose of the amendment is to transpose Directive (EU) 2025/2, which amends the Solvency II framework with regard to proportionality, supervisory quality, reporting, measures concerning long-term guarantees, macroprudential tools, sustainability risks, group supervision and cross-border supervision. The amendments to Solvency II introduce targeted changes to the regulatory framework for insurers and reinsurers, including a stronger application of the proportionality principle, enhanced supervisory quality and coordination, revised reporting requirements, new macroprudential tools, and greater consideration of sustainability risks and long-term liabilities. The transposition deadline is 30 January 2027. The draft also incorporates amendments related to the proposed new Accounting Act and changes identified by the Czech National Bank aimed at reducing the regulatory burden within financial market regulation. The transposition is intended to be implemented in a minimalist manner, limiting changes to Czech law to those necessary to comply with the Directive.
- The Czech National Bank (CNB) has published a notice confirming that the transitional period under the EU Markets in Crypto-Assets Regulation (MiCA) ended on 1 July 2026, meaning that only authorised legal entities may provide crypto-asset services across the EU. The CNB granted licences to 11 entities out of 251 applications, many of which were rejected or incomplete. For crypto-asset service providers, including trading platforms, advisers, exchanges etc., the new rules require obtaining a MiCA licence, complying with enhanced governance and client asset protection requirements, and becoming subject to regulatory supervision. Licensed providers may also passport their services across the EU. Entities that failed to obtain authorisation by the deadline must cease providing crypto-asset services, stop onboarding new clients, and wind down their activities, as continuing to operate without a licence may result in supervisory and enforcement action.
- The MNB cut its base rate by 25 bp to 5.50% in August 2026, extending the summer easing cycle to a third consecutive reduction. The Monetary Council cited continued disinflation, moderating wages and a broadly stable forint, while flagging heightened fiscal risks after the Ministry of Finance widened the 2026 deficit target to 7.5% of GDP. András Kármán as minister of finance was also named IMF Alternate Governor. Hungarian banks should update loan-pricing, ALM and stage-migration models; cross-border groups should factor a lower Hungarian rate path into 2027 capital planning. The wider deficit and euro adoption commitment for 2030 raise sovereign-risk watchpoints.
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Kristýna
Tupá
Counsel
czech republic