RSS
Regulatory CapitalEU rules on capital requirements for credit institutions and investment firms aim to put in place a comprehensive and risk-sensitive framework and to foster enhanced risk management amongst financial institutions. This will maximise the effectiveness of the capital rules in ensuring continuing financial stability, maintaining confidence in financial institutions and protecting consumers.
New proposals on capital requirementsOn 20 July 2011, the Commission adopted a legislative package to strengthen the regulation of the banking sector. The proposal replaces the current Capital Requirements Directives (2006/48 and 2006/49) with a Directive and a Regulation and constitutes another major step towards creating a sounder and safer financial system. The directive governs the access to deposit-taking activities while the regulation establishes the prudential requirements institutions need to respect.
Public Consultation on possible measures to strengthen bank capital requirements for counterparty credit riskThe Commission Services invite views regarding possible measures in the area of counterparty credit risk, namely on: (i) capitalisation of exposures to central counterparties and (ii) the treatment of incurred credit valuation adjustments. Responses are requested by 9 March 2011.
Consultation on countercyclical buffersThe services of the European Commission launch a public consultation to seek stakeholders’ views on possible measures to mitigate fluctuations in the financial system by introducing counter-cyclical capital buffers for banks. Counter-cyclical capital buffers are variable capital reserves that banks would have to accumulate during economically good times. Banks could draw upon these reserves to continue lending and borrowing when economic conditions worsen. A regime for countercyclical capital buffers could also help to moderate the build up of excessive levels of credit in the financial system by raising the cost of credit, and so dampening demand, where there is evidence that levels are growing above established benchmarks.
Revision of the Capital Requirements DirectivesPublic hearing on further possible changes to the Capital Requirements Directive (“CRD IV”) - April 2010On 26 April 2010, the European Commission hosted a public hearing on further possible changes to the Capital Requirements Directive (“CRD IV”). The event was open to all stakeholders who have responded to the consultation of February 2010. Consultation of February 2010On 26 February 2010 the European Commission invited views regarding further possible changes to the CRD. The proposed amendments relate to liquidity standards, definition of capital, leverage ratio, counterparty credit risk, counter-cyclical measures including through-the-cycle provisioning for expected credit losses, systemically important financial institutions and single rule book in banking. This consultation was closed on 16 April 2010.
Consultation of July 2009This consultation was closed on 4 September 2009. Further amendments to the Capital Requirements Directive (July 2009)On 13 July 2009 the European Commission adopted a proposal to further amend the CRD. The proposed amendments address capital requirements for the trading book and re-securitisations, disclosure of securitisation exposures, and remuneration policies. They form part of the Commission’s response to the financial crisis by strengthening the regulatory framework in those areas, which were relevant to the causes of the crisis.
Consultation of April 2009On April 2009 the Commission services requested feedback regarding possible changes to the CRD with regard to remuneration policies. Comments were requested by May 6, 2009.
The Commission services also requested feedback regarding possible CRD changes to strengthen capital and disclosure requirements for the trading book and for complex securitisations. Comments were requested by April 29, 2009.
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