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 ArticleIOSCO Report on Market Fragmentation and Cross-Border Regulation
Next ArticleECB Consults on EONIA to €STR Legal Action Plan
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.
The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.
The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.
The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).
The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.