Sweeping regulatory reporting reforms are expected to drive transformative change across the European Union’s financial sector in 2025. Despite the challenges banks face in meeting stringent deadlines and complex standards, they are adapting their operations to comply with the new regulations and redefining their approach to regulatory reporting. Many financial institutions now recognize that the regulatory reforms are more than just a box-ticking exercise. Instead, they are a strategic opportunity to bolster transparency, strengthen resilience, and champion innovation within the market.
The European Banking Authority (EBA) is driving the EU’s regulatory evolution. It is reshaping the future of banking in the 27-member bloc as part of its efforts to strengthen financial stability for a sustainable economy. The EBA’s Work Programme 2025, published in September, identified several challenges the banking sector could face in the coming years – and its efforts to offset them. These include the impact of interest rates, high inflation, geopolitical risks, and unstable economic circumstances.
“[These] may require adjustments in terms of approaches and efforts to assessing developments in and challenges to the banking sector (which also include cyber-resilience) and will need to be sustained for the foreseeable future,” the ECB notes in the report. Here, we explore the new regulatory reporting mandates and reforms that will be introduced across the EU in 2025.
CRR III: A new chapter in risk management
The Capital Requirements Regulation III (CRR III), which takes effect on January 1, 2025, is one of the most significant reforms aimed at strengthening the stability of the European banking sector. CRR III builds on the Basel III framework and raises the bar for capital adequacy, risk management, and transparency. Institutions must adapt their capital structures to meet stringent requirements, which may involve raising additional capital or redistributing existing resources. Beyond capital, CRR III brings enhanced disclosure obligations, pushing banks to refine their data collection and reporting processes to comply with new transparency standards.
Once a peripheral concern, environmental, social, and governance considerations are now central to regulatory expectations. CRR III compels banks to incorporate ESG risks into their broader risk frameworks, signaling a pivotal shift toward sustainable finance. Reflecting this trend, global ESG assets under management (AUM) are expected to surge from $18.4 trillion in 2021 to $34 trillion by 2026. This underscores the increasing prioritization of sustainability in investment strategies.
DORA reporting: Strengthening operational resilience
The Digital Operational Resilience Act (DORA) enhances transparency regarding financial institutions’ IT and cyber-risk resilience. The mandate takes effect on January 17, 2025. Banks must provide detailed reports on their operational resilience measures, including stress testing results, incident recovery times, and cybersecurity controls. DORA aims to safeguard financial stability in an increasingly digitalized environment, ensuring institutions are prepared to handle cyber threats and operational disruptions. By formalizing operational resilience reporting, DORA aligns with the broader EU agenda to enhance systemic resilience while fostering trust in digital financial services.
P3 (Pillar 3) hub: Harmonizing transparency obligations
The Pillar 3 Hub, expected to come into effect in April 2025, streamlines and consolidates disclosure requirements for risk management, capital adequacy, and ESG factors into a centralized reporting framework. The initiative emphasizes harmonized, standardized reporting formats, such as eXtensible Business Reporting Language (XBRL), to improve data comparability and market discipline. Institutions must align their disclosure practices with the P3 Hub, demonstrating accountability to regulators, investors, and the public. This reform underscores the EBA’s focus on ensuring transparency while reducing the reporting burden on financial institutions by centralizing diverse disclosure mandates.
EBA’s vision: Stability and inclusion
The EBA has laid out a comprehensive agenda for 2025 that is focused on transparency, stability, and inclusivity. Along with CRR III and DORA, the regulator is also introducing other significant reforms financial institutions will face in 2025.
- EBA Instant Payment Reporting: As instant payments become the norm across Europe, the EBA’s new reporting mandate ensures institutions provide transparency on transaction costs and rejected transfers within the Single Euro Payments Area (SEPA) framework. This aligns with the EBA’s mission to drive innovation, reduce consumer costs, and improve service quality. Institutions must submit their annual reports by April 9, 2025.
- EBA Diversity Benchmarking: The focus on governance and inclusivity continues with this initiative, which mandates periodic reporting on diversity practices, including gender pay gaps and policies. Due every three years, the next report is scheduled for April 30, 2025. This reflects the EBA’s commitment to fostering a more inclusive and equitable financial sector.
MiCAR (Markets in Crypto-Assets Regulation): Regulating emerging asset classes
The MiCAR framework introduces a standardized approach to reporting activities related to crypto assets, including stablecoins, Non-Fungible Tokens (NFTs), and decentralized finance (DeFi). Institutions involved in crypto transactions must comply with reporting standards covering liquidity, consumer protection, and risk exposure.
MiCAR took effect in June 2023, with the date of license applications staggered. Asset-referenced and e-money tokens had 12 months to apply, while crypto-asset service providers (CASPs) must lodge their applications by January 2025. MiCAR is scheduled for implementation in 2025. It positions the EU as a pioneer in crypto regulation. It provides a clear compliance roadmap while fostering innovation in digital assets and reflects the EBA’s forward-looking strategy to address the risks and opportunities of the evolving financial ecosystem.
FICOD (Financial Conglomerates Directive): Enhancing multi-sector oversight
The FICOD directive requires conglomerates operating across banking, insurance, and other sectors to adopt a unified risk management and capital adequacy reporting structure. By 2025, institutions must demonstrate compliance through consolidated reports detailing interdependencies and cross-sectoral risks. This reform seeks to mitigate systemic risks associated with multi-sector entities while enhancing regulatory visibility into complex financial structures. The directive positions the EU as a leader in holistic financial oversight, ensuring stability across interconnected markets.
Transforming regulatory reporting challenges into opportunities for differentiation
“As the financial sector moves into 2025, regulatory reporting continues to evolve, underscoring the delicate balance between financial stability, operational transparency, and market innovation,” says Sébastien Polese, General Manager at SBS.
“Institutions must consider solution offerings rooted in compliance, efficiency, and forward-thinking technology designed to streamline the increasingly complex demands from regulatory authorities. SBS remains dedicated to empowering financial institutions by streamlining these regulatory processes through our SBP Regulatory Reporting platform,” Polese adds.
Hybrid cloud solutions are increasingly dominating the financial sector, reflecting a broader trend toward balancing flexibility and security. Today, approximately 67% of financial institutions rely on a mix of cloud and on-premises systems, with 21% hosting their production databases entirely in the cloud—outpacing the average of 18% across other industries.
Features such as the XBRL conversion and direct-feed capabilities are key to minimizing manual intervention and enhancing data precision. They also enable seamless adherence to the EBA mandates’ reforms, which will ultimately transform regulatory reporting into an opportunity for differentiation. By adopting these advanced tools, banks and financial services firms can navigate the complexities of compliance while efficiently managing reporting obligations, reducing administrative overheads, and focusing on strategic growth.
How SBS can help
The EU’s regulatory landscape in 2025 presents challenges—but also has the potential for transformation. Financial institutions can turn regulatory reporting into a catalyst for growth, resilience, and leadership with the right tools and support. Our SaaS-enabled Sopra Banking Platform Regulatory Reporting solution simplifies and transforms reporting processes, covering all the key regulations detailed in this article and more. Benefits include streamlined reporting processes, real-time insights into regulatory data through analytics, and a low-code approach for easy configuration and customization.
SBS is here to guide you every step of the way, providing the solutions and expertise needed to navigate the complexities of banking regulations through solutions tailored to help institutions stay ahead in an ever-changing regulatory landscape.
For more expert content on industry outlooks and innovation, subscribe to our newsletter or visit our Insights page.