Group therapy: Prudential v accounting consolidation in a world of SPVs

The EBA's January 2026 Report on consolidation comes at a particularly important stage in the evolution of bank balance sheet management. Banks increasingly rely on sophisticated risk-transfer and funding structures, yet the prudential framework must remain capable of calibrating capital requirements in a way that is both effective and proportionate: robust enough to capture residual or re-emerging risk, but not so blunt as to produce economically unjustified double counting where no additional... By: Hogan Lovells