The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs) with a multiple-point-of-entry (MPE) resolution strategy and methods for the indirect subscription of instruments eligible for meeting the minimum requirement for own funds and eligible liabilities (MREL), and the extension of the transitional period for continuing to provide crowdfunding services. These regulations have been published in the Official Journal of the European Union.
Below are the key highlights of the aforementioned regulations:
- The Commission Delegated Regulation 2022/2060 supplements the Capital Requirements Regulation (CRR or Regulation 575/2013) with regard to the regulatory technical standards that specify the criteria for assessing the modellability of risk factors under the internal model approach (IMA) and specify the frequency of that assessment under Article 325be(3) of CRR. The Regulation goes into effect on November 15, 2022.
- The Commission Delegated Regulation 2022/2059 supplements the Capital Requirements Regulation (CRR or Regulation 575/2013) with regard to the regulatory technical standards that specify the technical details of back-testing and profit and loss attribution requirements under Articles 325bf and 325bg of CRR. The Regulation goes into effect on November 15, 2022.
- The Commission Delegated Regulation 2022/2058 supplements the Capital Requirements Regulation (CRR or Regulation 575/2013) with regard to regulatory technical standards on liquidity horizons for the alternative internal model approach, as referred to in Article 325bd(7) of CRR. The Regulation goes into effect on November 15, 2022.
- Regulation 2022/2036 amends the Capital Requirements Regulation (CRR or Regulation 575/2013 and the Bank Recover and Resolution Directive (BRRD or Directive 2014/59/EU) regarding the prudential treatment of G-SIIs with a MPE resolution strategy and methods for the indirect subscription of instruments eligible for meeting MREL. The Regulation goes into effect on November 14, 2022. However, Article 1, point (3), point (5)(b), and points (7), (8) and (9) shall apply from January 01, 2024.
- The Commission Delegated Regulation 2022/1988 extends the transitional period for continuing to provide crowdfunding services in accordance with national law as referred to in Article 48(1) of the Crowdfunding Regulation (2020/1503). The transitional period referred to in Article 48(1) of Regulation 2020/1503 has been extended until November 10, 2023. The Regulation shall apply from November 11, 2022.
- Regulation 2022/2060: CRR Market Risk
- Regulation 2022/2059: CRR Market Risk
- Regulation 2022/2058: CRR
- Regulation 2022/2036: BRRD
- Regulation 2022/1988: Crowdfunding Regulation
Keywords: Europe, EU, Banking, CRR, Regulatory Technical Standards, Basel, Regulatory Capital, BCBS, Market Risk, FRTB, BRRD, Resolution Framework, MREL, Crowdfunding Regulation, Crowdfunding Service Providers, Regulation 2022 2060, Regulation 2022 2059, Regulation 2022 2058, Regulation 2022 2036, Regulation 2022 1988, EC
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