Featured Product

    European Council Endorses Package on CRD 5, CRR 2, BRRD 2, and SRMR 2

    December 04, 2018

    European Council endorsed the agreement achieved between the presidency and the Parliament on the key measures of a comprehensive legislative package aimed at reducing risks in the banking sector in EU. This is a significant step toward strengthening the Banking Union. The banking package comprises amendments to two regulations and two directives—namely amendments to the Capital Requirements Regulation and Directive (CRR/CRD), the Bank Recovery and Resolution Directive (BRRD), and the Single Resolution Mechanism Regulation (SRMR).

    EC presented the banking package in November 2016 to implement the reforms agreed at the international level, following the 2007-08 financial crisis. The package includes prudential standards adopted by BCBS and by FSB. The agreed measures deliver on three of the key objectives set out by the European Council roadmap on completing the Banking Union agreed in June 2016:

    • Enhancing the framework for bank resolution, particularly the necessary level and quality of the subordination of liabilities (MREL) to ensure an effective and orderly bail-in process.
    • Introducing the possibility for resolution authorities to suspend a bank's payments and/or contractual obligations when it is under resolution, to help stabilize the bank's situation.
    • Strengthening bank capital requirements to reduce incentives for excessive risk taking, by including a binding leverage ratio, a binding net stable funding ratio, and setting risk-sensitive rules for trading in securities and derivatives.

    In addition, the banking package contains measures to improve lending capacity of banks and to facilitate a greater role for banks in the capital markets. This involves reducing the administrative burden for smaller and less complex banks, linked in particular to reporting and disclosure requirements; enhancing the capacity of banks to lend to small and medium-size enterprises; and reducing the costs of issuing/holding certain instruments, such as high quality securitization instruments or covered bonds. The banking package also contains a framework for the cooperation and information-sharing among the various authorities involved in the supervision and resolution of cross-border banking groups.

    Work on the remaining outstanding issues will continue at the technical and political levels, in view of finalizing negotiations on the banking package by the end of the year. European Parliament and Council will then be called on to adopt the proposed regulation at first reading.

     

    Related Links

    Keywords: Europe, EU, Banking, Banking Union, CRR 2, CRD 5, BRRD 2, SRMR 2, Proportionality, European Council

    Related Articles
    News

    BCBS Amends Capital Treatment of Non-Performing Loan Securitizations

    BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.

    November 26, 2020 WebPage Regulatory News
    News

    BoE to Move Statistical Data Collection to BEEDs Portal

    BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.

    November 25, 2020 WebPage Regulatory News
    News

    APRA Updates Reporting Standards and Guidance for EFS Data Collection

    APRA published the updated reporting standards and guidance for the collection of Economic and Financial Statistics (EFS), following a consultation process. Also published was a response letter to the feedback received on the proposal for amending the EFS reporting standards and guidance.

    November 24, 2020 WebPage Regulatory News
    News

    EC Consults on Criteria for Environmentally Sustainable Activities

    EC is consulting on a draft delegated regulation to supplement the Taxonomy Regulation (2020/852) by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as environmentally sustainable.

    November 20, 2020 WebPage Regulatory News
    News

    IFRS Examines Incorporation of Climate Risk Issues into IFRS Standards

    The IFRS Foundation published material highlighting the ways in which existing requirements in IFRS standards require companies to consider climate-related matters when their effect is material to the financial statements.

    November 20, 2020 WebPage Regulatory News
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6162