EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation
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.
Related Links
- 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
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Dieter Van der Stock
IFRS subject matter expert; LDTI subject matter expert; accounting authority; risk management specialist
Previous Article
DNB Publishes Multiple Regulatory Updates in October 2022Related 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.
