EU published the finalized fifth Capital Requirements Directive CRD V (EU Directive 2019/878) in the Official Journal of the European Union. Directive 2019/878 of the European Parliament and of the Council amends the fourth Capital Requirements Directive, or CRD IV (Directive 2013/36/EU). The amendments to CRD IV relate to exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers, and capital conservation measures. CRD V shall enter into force on the twentieth day following that of their publication in the Official Journal of the European Union. Directive 2019/878 specifies that the members states shall adopt and publish the measures necessary to comply with CRD V by December 28, 2019, with certain exceptions, as specified in the Article 3 (titled "Transposition") of CRD V.
CRD V aims to address issues raised in relation to the provisions of CRD IV that proved not to be sufficiently clear and have, therefore, been subject to divergent interpretations or that have been found to be overly burdensome for certain institutions. It also contains adjustments to CRD IV that are necessary following either the adoption of other relevant Union legal acts or the changes proposed in parallel to the Capital Requirements Regulation (CRR). Finally, the amendments better align the current regulatory framework to international developments to promote consistency and comparability among jurisdictions.
The member states shall adopt and publish, by December 28, 2020, the measures necessary to comply with this Directive and shall immediately inform the Commission thereof. They shall apply those measures from December 29, 2020. However, the provisions necessary to comply with the amendments set out in point (21) and points (29)(a), (b), and (c) of Article 1 of CRD V as regards Article 84 and Article 98(5) and (5a) of CRD IV shall apply from June 28, 2021 and the provisions necessary to comply with the amendments set out in points (52) and (53) of Article 1 of CRD V as regards Articles 141b, 141c, and 142(1) of CRD IV shall apply from January 01, 2022.
Effective Date: June 27, 2019
Keywords: Europe, EU, Banking, CRD IV, CRD V, Systemic Risk, CRR2, Regulatory Capital, Basel III, European Council, European Parliament
Previous ArticleEU Publishes BRRD II and SRMR II in the Official Journal
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.
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.
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.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
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.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).