Author (Corporate) | Council of the European Union, European Parliament |
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Series Title | Official Journal of the European Union |
Series Details | L 204, Pages 4-17 |
Publication Date | 26/06/2020 |
Content Type | Legislation |
Summary: Regulation (EU) 2020/873 - adopted by the Council of the European Union and the European Parliament on 24 June 2020 - which introduced amendments to Regulation (EU) No 575/2013 (Capital Requirements Regulation) and Regulation (EU) 2019/876 (CRR II). Further information: Regulation (EU) No 575/2013 is seen as one of the main pillars of the European Union's prudential regulatory framework for credit institutions operating across the EU. The proposed amendments aim at implementing some changes to maximise the capacity of credit institutions to lend and to absorb losses related to the COVID-19 (coronavirus) pandemic, while still ensuring their continued resilience. The changes include exceptional temporary measures to alleviate the immediate impact of Coronavirus-related developments, by adapting the timeline of the application of international accounting standards on banks' capital, by treating more favourably public guarantees granted during this crisis, by postponing the date of application of the leverage ratio buffer and by modifying the way of excluding certain exposures from the calculation of the leverage ratio. The Commission also proposes to advance the date of application of several agreed measures that incentivise banks to finance employees, SMEs and infrastructure projects. This proposal was tabled by the European Commission on 28 April 2020 as part of a package on banking matters, which also included an Interpretative Communication on the application of the accounting and prudential frameworks. The Council of the European Union and the European Parliament signed off the draft law on 24 June, which was published in the Official Journal on 26 June. |
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Source Link | Link to Main Source https://eur-lex.europa.eu/eli/reg/2020/873/oj |
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Subject Categories | Economic and Financial Affairs |
Subject Tags | Financial Services |
Keywords | Banks | Banking, COVID-19 (Coronavirus) |
International Organisations | European Union [EU] |