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

By Regulatory News

May 14, 2019

Basel III

European Council adopted a comprehensive legislative package that will reduce risks in the banking sector and further reinforce banks' ability to withstand potential shocks. The 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). Following the signature of the adopted legislation in the week of May 20, the banking package will be published in the Official Journal of the European Union in the course of June and will enter into force 20 days later. Most of the new rules will start applying in mid-2021.

The proposals implement reforms agreed at the international level following the 2007-2008 financial crisis to strengthen the banking sector and address remaining challenges to financial stability. Presented in November 2016, the package include elements agreed by BCBS and FSB. The package includes the following key measures:

Leverage ratio requirement for all institutions as well as a leverage ratio buffer for all global systemically important institutions
A net stable funding requirement
New market risk framework for reporting purposes, including measures reducing reporting and disclosure requirements and simplifying market risk and liquidity rules for small non-complex banks
Requirement for third-country institutions with significant activities in EU to have an EU intermediate parent undertaking
New total loss-absorbing capacity (TLAC) requirement for global systemically important institutions
Enhanced Minimum Requirement for own funds and Eligible Liabilities (MREL) subordination rules for global systemically important institutions and other large banks
New moratorium power for the resolution authority
A number of targeted measures to cater for EU specificities, such as incentives for investments in public infrastructures and small and medium-size enterprises (SMEs) or a credit risk framework facilitating the disposal of non-performing loans

Related Links

Effective Date: OJ+20 Days

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

Featured Experts

María Cañamero

Skilled market researcher; growth strategist; successful go-to-market campaign developer

Dieter Van der Stock

IFRS subject matter expert; accounting authority; risk management specialist

IA of Hong Kong to Regulate Insurance Intermediaries from September 23

European Council Adopts Updated Rules on Clearing of OTC Derivatives


News FASB Proposes Improvements to Derivatives and Hedging Standard FASB proposed an Accounting Standards Update, on codification improvements to hedge accounting under Topic 815, to clarify certain sections of the 2017 hedge accounting standard (Update 2017-12). November 13, 2019 WebPage Regulatory News
News FASB Approves Guidance to Assist in Transition to New Reference Rates FASB approved an Accounting Standards Update (Topic 848) to provide temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the reference rate reform on financial reporting. November 13, 2019 WebPage Regulatory News
News BIS and MAS Launch Innovation Hub in Singapore BIS and MAS launched the BIS Innovation Hub Center in Singapore. November 13, 2019 WebPage Regulatory News
News MAS Collaborates on Research Platform to Support Fintech Investments MAS, Deloitte, and S&P Global Market Intelligence have collaborated to develop a prototype for an industry-wide Fintech Research Platform to help investors and financial institutions connect with fintech start-ups that they can partner with or invest in. November 12, 2019 WebPage Regulatory News
News MAS and CSA Sign Agreement to Strengthen Collaboration in Fintech MAS and eight members of the Canadian Securities Administrators (CSA) signed a cooperation agreement to strengthen collaboration in fintech between Singapore and CSA’s member jurisdictions. November 12, 2019 WebPage Regulatory News
News APRA Consults to Standardize Submission Date for Quarterly Reporting APRA proposed to standardize quarterly reporting due dates for authorized deposit-taking institutions. The proposed standardized due date is 35 calendar days after the last day of the reference quarter, which will create a 14-calendar-day extension for credit unions and building societies. November 08, 2019 WebPage Regulatory News
News EBA Single Rulebook Q&A: First Update for November 2019 EBA updated the Single Rulebook question and answer (Q&A) tool with answers to two questions. The answers provide clarifications on topics related to own funds and strong customer authentication under the revised Payment Services Directive or PSD2. November 08, 2019 WebPage Regulatory News
News FED Proposes to Extend Initial Compliance Dates Under SCCL Rule FED published a proposal to extend, by 18 months, the initial compliance dates for foreign banks subject to the single-counterparty credit limit (SCCL) rule. November 08, 2019 WebPage Regulatory News
News EBA Publishes Technical Package on Reporting Framework 2.9.1 EBA published a new release of the reporting framework 2.9.1. This release includes validation rules, Data Point Model (DPM) data dictionary, XBRL taxonomy, and other supporting documents. Additionally, the release fixes some modeling issues on COREP Liquidity and FINREP. November 08, 2019 WebPage Regulatory News
News BIS Paper Examines Shadow Banking System in China BIS published a working paper that analyzes money creation mechanisms of shadow banking tools in China, investigates their effects on financial risk, and surveys recent regulation. November 08, 2019 WebPage Regulatory News

RESULTS 1 - 10 OF 4131