European Parliament published a briefing that has been prepared to support the work of ECON Committee on the scrutiny of delegated acts, in particular the discussion of June 18, 2018 on the forthcoming draft measures (Delegated Acts) and in particular regulatory technical standards under the Capital Requirements Directive 2013/36/EU (CRD IV) and the Capital Requirements Regulation (EU) No 575/2013 (CRR). It covers the EBA draft regulatory technical standards on estimation and identification of an economic downturn in internal ratings-based (IRB) modeling and provides an overview to the Delegated Acts and regulatory technical standards, as proposed by EC in the CRD V (COM(2016)854) and CRR II (COM(2016)850) proposals.
The briefing focuses on the forthcoming (and outstanding) "Level 2" measures (for example, delegated acts and regulatory technical standards) under CRD IV and CRR, which, together, constitute the core of the EU banking regulation. In view of the prerogative of the European Parliament to object to delegated acts/regulatory technical standards, this briefing provides an updated overview table on the state of play of these measures; it also focuses on the draft EBA regulatory technical standards on estimation and identification of an economic downturn in IRB modeling, which is under consultation (for the second time) because particular attention is paid to the methods on how banks’ capital requirements are measured. Thus, they are crucial for the application of the CRR/CRD IV and for the industry in view of their substantive impact on capital needed. Finally, the briefing contains a brief outlook on Level 2 measures proposed by EC in CRD V and CRR II. CRD and CRR contain empowerments for EC to adopt Level 2 measures.
Related Link: European Parliament Briefing
Keywords: Europe, EU, Banking, CRR 2, CRD 5, Briefing, Regulatory Technical Standards, IRB Modeling, European Parliament
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MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.