EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR). The Opinion raises issues related to the divergent approaches on the scope of the authorization of credit institutions and the extent and type of commercial activities that may be carried out by credit institutions. EBA also recommends that changes to the regulatory perimeter should be accompanied by an impact assessment.
The Opinion highlights that divergences remain in the interpretation of elements of the notion of "credit institution," despite its definition being embodied in the CRR, an EU Regulation directly applicable in national law. Such divergences adversely impact the significant progress made with the Single Rulebook in levelling the playing field and deepening EU market integration in the banking and financial sector. The EBA Opinion is that the key terms "business of which," "deposits," "other repayable funds," and "from the public" that compose the notion of "credit institution" should be clarified to establish a true level playing field across EU to enhance the effectiveness of the Single Rulebook. EBA is, therefore, inviting EC to consider providing clarifications of such key terms with a view to effectively and substantively harmonize the notion of "credit institution" set out in EU law. These clarifications would be beneficial to the development of a uniform Single Rulebook and ultimately to a deeper market integration of banking and financial services across EU. EBA also highlights that these issues had been analyzed and brought to the attention of EC in the previous reports and related opinions of EBA.
Keywords: Europe, EU, Banking, CRR, CRD, Single Rulebook, Opinion, EC, EBA
Previous ArticleESAs Launch Survey on Templates for Product Disclosures Under SFDR
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.