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

    HKMA on Fintech Adoption and Innovation by Banks in Hong Kong

    HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.

    May 20, 2020 WebPage Regulatory News
    News

    BIS on Impact of Increasing Use of Cloud Technology on Cyber Risk

    BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.

    May 20, 2020 WebPage Regulatory News
    News

    ECB Consults on Guide for Managing Climate and Environmental Risks

    ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.

    May 20, 2020 WebPage Regulatory News
    News

    ECB Issues Opinion on Revisions to CRR in Response to COVID Crisis

    ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.

    May 20, 2020 WebPage Regulatory News
    News

    EBA Assesses Interlinkages Between Recovery and Resolution Planning

    EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).

    May 20, 2020 WebPage Regulatory News
    News

    SRB Publishes Final MREL Policy Under the Banking Package

    SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.

    May 20, 2020 WebPage Regulatory News
    News

    EIOPA Risk Assessment Shows Increase in Credit and Market Risks

    EIOPA published its risk dashboard based on Solvency II data from the fourth quarter of 2019.

    May 18, 2020 WebPage Regulatory News
    News

    MNB Issues Statement on Loan Payments After Moratorium Expires

    MNB published a statement on loan payments post the announced moratorium, in addition to a set of new questions and answers (Q&A) on supervisory measures and requirements announced amid COVID-19 pandemic.

    May 18, 2020 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for May 2020

    EBA updated the Single Rulebook question and answer (Q&A) tool for banks.

    May 15, 2020 WebPage Regulatory News
    News

    US Agencies Temporarily Amend Supplementary Leverage Ratio Calculation

    US Agencies (FDIC, FED, and OCC) published an interim final rule that temporarily revises the supplementary leverage ratio calculation for depository institutions.

    May 15, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5195