The European Commission has today adopted a review of the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD) to ensure that EU banks become more resilient to potential future economic shocks while contributing to the EU’s from recovery the COVID-19 pandemic and the transition to climate neutrality.
The new banking rules package finalises the implementation of the Basel III agreement (in the EU) reached by the EU and its G20 partners in the Basel Committee on Banking Supervision (BCBS), to make banks more resilient to possible economic shocks.
The review consists of the following legislative elements:
- a legislative proposal to amend the Capital Requirements Directive (Directive 2013/36/EU);
- a legislative proposal to amend the Capital Requirements Regulation (Regulation 2013/575/EU); and
- a separate legislative proposal to amend the Capital Requirements Regulation in the area of resolution (the so-called “daisy chain” proposal).
The package consists of the following parts:
- Implementation of Basel III – strengthening resilience to economic shocks;
- Sustainability – contributing to the green transition; and
- Stronger supervision – ensuring sound management of EU banks and better protecting financial stability.
Today’s review also addresses – in a proportionate manner – the issue of the establishment of branches of third-country banks in the EU. The package harmonises EU rules in this area to allow supervisors better management of risks relating to these entities, which have significantly increased their activities in the EU over recent years.