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CRD V + CRR II: Trilogue negotiations on EU banking package begin

EU parliament CRR CRD IV

The trialogue negotiations between the EU institutions on the EU-wide implementation of the "Basel IV" regulations are scheduled to begin before the end of July. The Bank Recovery and Resolution Directive (BRRD II), the Capital Requirements Directive (CRD V) and the Capital Requirements Regulation (CRR II) for implementing the banking supervisory regulations at European level, as well as the Single Resolution Mechanism Regulation (SRMR II) are under discussion. Changes in CRR and CRD include the leverage ratio (LR), net stable funding ratio (NSFR), pillar 2 add-ons, liquidity, capital waivers, settlement and restructuring (TLAC/MREL) and proportionality.

On 28 May 2018, the ECOFIN Council adopted and announced its general approach on the CRD V and CRR II banking package. On 20.06.2018 the Economic and Monetary Committee of the European Parliament (ECON) published its decision on this subject.

The following table summarizes the current status of significant items:

Furthermore, according to the current state of consultation, development banks are to be uniformly exempted from CRD V and CRR II.

Most of the proposals provide for application from 18 and 24 months after publication in the EU Official Journal, which is currently expected in the first half of 2019. Thus, an application can be assumed at the end of 2021 or the beginning of 2022. Against this background, we see a very urgent and considerable need for action for the timely implementation of the regulations.

The experts at RFC Professionals have been successfully assisting their clients in implementing regulatory changes for many years. RFC Professional would be pleased to support you in assessing the effects of the changes on your institute and their implementation.