Addressed to financial companies headquartered in Portugal i.e. factoring companies, mutual guarantee and investment companies, financial leasing and credit finance firms.
Follows May 2026 EBA published final report amending Guidelines on application of the definition of default, following public consultation issued Jul. 2025, see #261017.
Overview
In May 2026, EBA published Guidelines amending EBA/GL/2016/07 on application of definition of default under art 178 CRR (EBA/GL/2026/05), enter into force Oct. 19.
Revised guidelines post update to mandate in art 178.7 CRR, as amended by CRR3.
The final text of the guidelines generally maintains the previously proposed approach.
Changes introduced are limited in scope; relevant period to handle technical arrears at individual invoice level in non-recourse factoring operations goes from 30 to 90 days.
Technical adjustments per CRR3 also introduced, specifically, removal of reference to discretion re 180-day arrears threshold and guidelines alignment with new wording of art 178.3d) CRR on restructuring measures likely to result in diminished financial duty.
No material changes introduced re 1% threshold to identify diminished financial duty; framework applicable to identifying default situations in context of credit restructuring.
Key Aspects
POR CB emphasizes importance of less significant credit institutions, entities covered by art 1 of Notice 11/2014 complying with the Guidelines, which must be followed and applied within the context of the applicable legislation and regulations.
It will take the Guidelines into account when interpreting legal and regulatory provisions applicable to the cited institutions and for purpose of verifying compliance.
Effectiveness
The guidelines apply as of Oct. 19, 2026.
Regulators
POR CB
Entity Types
Bank; BS; CU; Inv Co; MG Orig; MSB
Reference
OG 09/2026, Cir Lt CC/2026/00000023, PR, 9/15/2026; EBA/GL/2026/05
