In a letter to the Directorate-General of EC (DG FISMA), EBA communicated the new deadlines within which it plans to submit certain regulatory and implementing technical standards under the risk reduction measures package. This package covers the amended Capital Requirements Directive and Regulation (CRD 5 and CRR 2) and the amended Bank Recovery and Resolution Directive (BRRD 2). The letter sets out new deadlines for certain technical standards that are due to be delivered by December 2019 and June 2020. Beyond the risk reduction measures package mandates, EBA also communicated about the delay in a mandate, stemming from European Markets Infrastructure Regulation or EMIR, for the regulatory technical standards on initial margin model validation.
In the letter, EBA highlights that these are only a few deviations beyond the deadlines set out in the roadmap on risk reduction measures package, despite the COVID-19 pandemic. The EBA roadmap on the risk reduction measures package, on November 21, 2019, stated that there are contingencies that may limit the ability of EBA to deliver all mandates on time. This is because a small number of mandates have a deadline of 6-9 months only after the entry into force. Additionally, EBA already expected, at the date of the publication of roadmap, some delays on a limited number of mandates in the areas of large exposures, interest rate risk in the banking book (IRRBB), minimum requirements for own funds and eligible liabilities (MREL), and bail-in due to the complexity and contingency to progress in other areas.
In accordance with Article 10(2) regarding regulatory technical standards and Article 15(2) regarding implementing technical standards under the EBA Founding Regulation, EC may request the submission of such technical standards within a new time limit where draft technical standards have not been submitted within the deadlines provided in the legislation. EBA is, therefore informing in the letter that it plans to submit technical standards due to be delivered by December 2019 and June 2020 within the new deadlines set out in the letter, most of which have been set out accordingly in the EBA roadmap on the risk reduction measures package. EBA highlights that it remains committed to accomplish its pending mandates within the deadlines, while the utmost attention will continue to be given to the quality of the Single Rulebook.
Keywords: Europe, EU, Banking, CRR2, CRD5, BRRD2, Basel, Reporting, Risk Reduction Package, COVID-19, Single Rulebook, Large Exposures, IRRBB, MREL, EBA
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