Banking Package 2021

Summary:

Overview of the legislative packaged adopted by the European Commission on 27 October 2021, aimed at reviewing the European Union's banking rules.

Further information:

The package includes the following legislative elements:

• Directive amending Directive 2013/36/EU as regards supervisory powers, sanctions, third-country branches, and environmental, social and governance risks, and amending Directive 2014/59/EU;
• Regulation (EU) 2024/1623 amending Regulation (EU) No 575/2013 as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor;
• Regulation (EU) 2022/2036 amending Regulation (EU) No 575/2013 and Directive 2014/59/EU as regards the prudential treatment of global systemically important institutions with a multiple-point-of-entry resolution strategy and methods for the indirect subscription of instruments eligible for meeting the minimum requirement for own funds and eligible liabilities.

The proposed rules aimed at ensuring that banks across the European Union (EU) become more resilient to potential future economic shocks. The package finalises the implementation of the Basel III agreement in the EU and marks the final step in the reform of the banking rules.

For further details on the legislative initiatives and related procedures, please check individual records above.

Official

European Commission: Publications: Banking package https://ec.europa.eu/info/publications/211027-banking-package_en

European Commission: Press Release, 27/10/2021: Banking Package 2021: new EU rules to strengthen banks' resilience and better prepare for the future https://ec.europa.eu/commission/presscorner/detail/en/ip_21_5401

European Commission: Questions and Answers on the Banking Package 2021 (27 October 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_5386

European Commission: Read-out from the College meeting and press remarks by Executive Vice-President Dombrovskis on the Banking Package 2021 (27 October 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_5625

European Commission: Opening remarks by Commissioner Mairead McGuinness at the press conference on the Banking Package 2021 (27 October 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_5626

EPP EP Group: Newsroom, 27/10/2021: Make banks safer, not greener https://www.eppgroup.eu/newsroom/news/make-banks-safer-not-greener

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News

Reuters, 27/10/2021: EU pledges 'faithful' application of global bank capital rules from 2025 https://www.reuters.com/world/europe/eu-pledges-faithful-application-global-bank-capital-rules-2025-2021-10-27/

EurActiv, 10/11/2021: Basel III: Member states see national financial stability at risk https://www.euractiv.com/section/banking-union/news/basel-iii-member-states-see-national-financial-stability-at-risk/

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Commentary and Analysis

European Banking Federation (EBF): Press Release, 27/10/2021: Basel III package: EBF calls for further dialogue to secure Europe’s economic growth https://www.ebf.eu/prudential-policy-and-supervision/basel-iii-package-ebf-calls-for-further-dialogue-to-secure-europes-economic-growth/

Deloitte: News, 29/10/2021: Banking package: European Commission publishes proposal on the revised Capital Requirements Directive and Capital Requirements Regulation https://www2.deloitte.com/lu/en/pages/risk/articles/banking-package-european-commission-proposal-revised-capital-requirements-directive-capital-regulation.html

Linklaters: Sustainable Futures, 01/11/2021: EU Banking Package 2021: Commission publishes proposals to integrate ESG risks in the EU prudential framework https://sustainablefutures.linklaters.com/post/102h9pa/eu-banking-package-2021-commission-publishes-proposals-to-integrate-esg-risks-in

Wolters Kluwer: Expert Insights, 03/11/2021: 2021 European banking package proposal: Basel IV application from 2025 onwards https://www.wolterskluwer.com/en-gb/expert-insights/2021-european-banking-package-proposal-basel-iv-application-from-2025-onwards

Dublin City University: Brexit Institute: News, 04/11/2021: Building up resilience, recovery and sustainability in banking – new EU Banking Package https://dcubrexitinstitute.eu/2021/11/new-eu-banking-package/

Ernst & Young (EY), 15/11/2021: How the EU’s Banking Package 2021 has started the Basel 4 endgame https://www.ey.com/en_jo/banking-capital-markets-risk-regulatory-transformation/how-the-eu-s-banking-package-2021-has-started-the-basel-4-endgame

Ashurst: News & Insights, 25/11/2021: EU Prudential Banking Package 2021- get ready for significant changes https://www.ashurst.com/en/news-and-insights/legal-updates/eu-prudential-banking-package-2021--get-ready-for-significant-changes

DLA Piper: Insights, 29/11/2021: EU to tighten conditions of access to single market for third-country banks https://www.dlapiper.com/en/spain/insights/publications/2021/11/eu-to-tighten-conditions-of-access-to-single-market-for-third-country-banks/

Cyprus Mail: Legal View, 15/12/2021: A constantly evolving operating environment for banks https://cyprus-mail.com/2021/12/15/a-constantly-evolving-operating-environment-for-banks/

PwC Germany: Blogs, 22/12/2021: Focal points of the EU Commission’s Banking Package https://blogs.pwc.de/regulatory/knowledge-events/focal-points-of-the-eu-commissions-banking-package/6147/

European Association of Co-operative Banks (EACB): Position Papers, 23/12/2021: EACB comments on the European Commission banking package “Aligning EU rules on capital requirements to international standards" http://www.eacb.coop/en/position-papers/corporate-governance-amp-company-law/eacb-comments-on-the-european-commission-banking-package-ldquo-aligning-eu-rules-on-capital-requirements-to-international-standards.html

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