ECB Opinions on Capital Requirements and Crisis Management Frameworks
ECB published opinions on amendments to the EU framework for capital requirements of credit institutions and investment firms (CON/2017/46) and on revisions to the Union crisis management framework (CON/2017/47).
CON/2017/46 addresses issues related to changes to the existing EU regulatory and supervisory framework and the implementation of internationally agreed supervisory standards. CON/2017/47 addresses issues related to implementation of the total loss-absorbing capacity (TLAC) standard in the EU; amendments to the minimum requirement for own funds and eligible liabilities (MREL); transitional arrangements for MREL; early intervention measures; pre-resolution moratorium tool; and “failing or likely to fail” assessment for less significant credit institutions under the direct responsibility of the Single Resolution Board.
ECB received requests from the Council of the EU and the European Parliament, respectively, for an opinion on proposed amendments to Capital Requirements Regulation (CRR), Capital Requirements Directive (CRD), Single Resolution Mechanism Regulation, and Bank Recovery and Resolution Directive (BRRD). ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the Functioning of the EU since the proposed amending regulations and directives contain provisions affecting ECB’s tasks on policies related to the prudential supervision of credit institutions in accordance with Article 127(6) of the Treaty and the European System of Central Banks’ contribution to the smooth conduct of policies pursued by the competent authorities relating to the stability of the financial system, as referred to in Article 127(5) of the Treaty. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of ECB, the Governing Council has adopted these opinions.
Related Links:
Keywords: Europe, EU, Banking, CRR, CRD, SRM, BRRD, Capital Requirements Framework, Crisis Management Framework, TLAC, MREL, Opinion, ECB
Previous Article
FSB Report on the Peer Review of FranceRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
