Featured Product

    European Council Reaches Agreement on CRD 5, CRR 2, BRRD 2, and SRMR 2

    May 25, 2018

    European Council agreed on a package of measures aimed to reduce risk in the banking industry. The package comprises Capital Requirements Regulation and Directive (regulation 575/2013 or CRR 2, and directive 2013/36 or CRD 5), Bank Recovery and Resolution Directive (directive 2014/59/EU or BRRD 2), and Single Resolution Mechanism Regulation (806/2014 or SRMR 2).

    The proposals are intended to implement reforms agreed at the international level following the 2007–08 financial crisis. The reforms include elements agreed by BCBS and FSB. The proposals on bank capital requirements include a binding net stable funding ratio and a binding leverage ratio to prevent banks from excessively increasing leverage. The proposals on bank recovery and resolution implement the November 2015 standard of FSB on total loss-absorbing capacity (TLAC). They integrate the TLAC requirement into the minimum requirement for own funds and eligible liabilities (MREL) rules of EU. The TLAC standard sets out requirements for G-SIIs only while MREL covers the entire EU banking industry; the proposals address this and other differences between the two. While speaking at the ECOFIN Conference, the EC Vice President Valdis Dombrovskis highlighted that "this package also includes the principle of proportionality, with certain alleviations for smaller banks to reduce their reporting requirements and the related administrative burden." This important milestone "provides the Council Presidency with the mandate to start negotiations with the European Parliament." 

    This package contributes significantly to further reducing risks in EU banks and it is an essential element for the completion of Banking Union. It builds on existing banking rules and aims to complete the post-crisis regulatory agenda, making sure that outstanding challenges to financial stability are addressed. The European Council is due to review the progress achieved so far in reducing risk in the EU banking industry in June 2018 and could decide on further specific steps to be taken.

     

    Related Links

    Keywords: Europe, EU, Banking, CRR 2, CRD 5, BRRD 2, SRMR 2, Proportionality, EC, European Council

    Related Articles
    News

    BIS Surveys Centrals Banks on Issuance of Digital Currencies

    BIS published a report that presents the results of a survey among more than 60 central banks in late 2020 about their engagement in central bank digital currency (CBDC) work, their motivations, and their intentions regarding CBDC issuance.

    January 27, 2021 WebPage Regulatory News
    News

    OSFI Outlines Capital Treatment for COVID-19 Loan Guarantee Program

    OSFI issued a letter to federally regulated deposit-taking institutions on the capital treatment of new loans to businesses through the Highly Affected Sectors Credit Availability Program (HASCAP).

    January 27, 2021 WebPage Regulatory News
    News

    BCBS Proposes to Amend Rules on Minimum Haircut Floors for SFTs

    BCBS is consulting on two technical amendments to the rules on minimum haircut floors for securities financing transactions, or SFTs.

    January 26, 2021 WebPage Regulatory News
    News

    EC Consults on Crisis Management and Deposit Insurance Framework

    EC launched a targeted consultation on the review of crisis management and deposit insurance framework in EU.

    January 26, 2021 WebPage Regulatory News
    News

    EIOPA Sets Out Principles for Liquidity Stress Test for Insurers

    EIOPA published a paper that sets out the methodological principles of insurance stress testing with a focus on the liquidity component.

    January 26, 2021 WebPage Regulatory News
    News

    BIS Launches Euro Green Bond Fund for Central Banks

    BIS launched a EUR-denominated, open-ended fund for green bond investments by central banks and official institutions, following the launch of the first BIS green bond fund denominated in USD in September 2019.

    January 25, 2021 WebPage Regulatory News
    News

    EBA Announces Stress Test Timeline; ECB Sets Up Climate Change Center

    EBA announced that it will launch the 2021 EU-wide stress test exercise, with the publication of the macroeconomic scenarios on January 29, 2021.

    January 25, 2021 WebPage Regulatory News
    News

    BoE Discontinues Form CX on Capital Expenditure and Finance Leasing

    BoE announced that the reporting entities are no longer required to report Form CX after the fourth quarter of 2020 reference period, with the last collection on January 29, 2021.

    January 25, 2021 WebPage Regulatory News
    News

    PRA Updates Q&A on Branch Return, Announces End Date of COVID Facility

    PRA published Version 3 of the questions and answers (Q&A) on the Branch Return form, with this version superseding the version published in October 2020.

    January 25, 2021 WebPage Regulatory News
    News

    IAIS Consults on Application Paper on Supervision of Control Functions

    IAIS is consulting on a draft application paper on the supervision of control functions.

    January 25, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6504