November 23, 2016
The European Commission (EC) is presenting a comprehensive package of reforms to further strengthen the resilience of EU banks. This proposal builds on existing EU banking rules and aims to complete the post-crisis regulatory agenda by making sure that the regulatory framework addresses any outstanding challenges to financial stability, while ensuring that banks can continue to support the real economy.
These proposals include the following key elements:
- Measures to increase the resilience of EU institutions and enhancing financial stability
- Measures to improve banks’ lending capacity to support the EU economy
- Measures to further facilitate the role of banks in achieving deeper and more liquid EU capital markets to support the creation of a Capital Markets Union
The proposals amend the following pieces of legislation:
- The Capital Requirements Regulation(CRR) and the Capital Requirements Directive (CRD) which were adopted in 2013. These set out prudential requirements for credit institutions (i.e. banks) and investment firms, and rules on governance and supervision;
- The Bank Recovery and Resolution Directive(BRRD) and the Single Resolution Mechanism Regulation (SRMR) which were adopted in 2014. These spell out the rules on the recovery and resolution of failing institutions, and establish the Single Resolution Mechanism.
Further details on each of the proposals can be found in the full press release.
Please also see the Q&A for more information.