Amending capital requirements: The ‘CRD-V package’

‘EU Legislation in Progress’ briefings aim to provide Members of the European Parliament with systematic and automatic analysis on all substantial proposals for EU legislation at every stage of the legislative procedure. Each contains an account of the purpose, content and legal aspects of the legislation proposed, in particular analysing what the legislation would change, as well as any previous legislation and the background. An overview of stakeholders’ views is also provided, as well as the opinions of national parliaments and the two advisory committees.

They are all made publicly available for stakeholders and the public.

The briefings are continuously updated as they pass through the policy making process and the source url hyperlink above should take you to the latest available version.Despite significant progress since the financial crisis of 2007-2008, the overhaul of the financial regulatory framework remains a European Commission priority. The existing Capital Requirements Directive and Regulation (the 'CRD-IV package') set the prudential framework for financial institutions operating in the EU.

The proposed amendments to the package implement the most recent international regulatory provisions for banks (that is, higher risk-sensitivity), set by the Basel Committee on Banking Supervision (Basel III framework). They also address regulatory shortcomings and aim to contribute to sustainable bank financing of the economy.

The European Parliament's ECON Committee has named Peter Simon (S&D, Germany) rapporteur for both dossiers.

The European Parliament and the European Economic and Social Committee had, on several occasions, called for improvements to the existing framework. The European Commission itself had expressed a willingness to revise the CRR/CRD framework and it was expected that it would publish a legislative proposal (with its impact assessment) on a revised framework for investment firms on 20 December 2017.

Author: Andrej Stuchlik

EP: EPRS: Briefing: EU Legislation in Progress http://epthinktank.eu/eu-legislation-in-progress/

ESO: Background information: Proposal for a Directive of the European Parliament and of the Council amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures (COM (2016)854) http://www.europeansources.info/record/proposal-for-a-directive-of-the-european-parliament-and-of-the-council-amending-directive-2013-36-eu-as-regards-exempted-entities-financial-holding-companies-mixed-financial-holding-companies-remun/

ESO: Background information: Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements and amending Regulation (EU) No 648/2012 (COM (2016)850) http://www.europeansources.info/record/proposal-for-a-regulation-of-the-european-parliament-and-of-the-council-amending-regulation-eu-no-575-2013-as-regards-the-leverage-ratio-the-net-stable-funding-ratio-requirements-for-own-funds-and/

EP: EPRS: Briefing: Implementation Appraisal, December 2017: Revised framework for investment firms http://www.europeansources.info/record/revised-framework-for-investment-firms/

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