- Commission adopts technical standards for the identification of material risk takers subject to the rules on remuneration in the Capital Requirement Directive
The CRD IV package which transposes – via a Regulation and a Directive – the new global standards on bank capital (commonly known as the Basel III agreement) into the EU legal framework, entered into force on 17 July 2013.
On 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.
The European Commission has adopted (16/04) an implementing technical standard (ITS) which harmonises the content and format of data to be reported by 8'000 European banks to their supervisors in order to comply with the Capital Requirements Regulation (575/2013) and Capital Requirements Directive (2013/36).
This ITS gives legal effect to the draft standard prepared by the European Banking Authority (EBA) regarding the form and content of the reporting templates needed by European bank supervisors.
Following Commission adoption, the content of the ITS is now final. The implementing technical standard will enter into force following its publication in the Official Journal of the European Union in the coming weeks (expected by mid-June).
The reporting templates will be updated as soon as possible to incorporate revised standards on asset encumbrance and forbearance and non-performing loans, and to reflect amended definitions on leverage and liquidity once the delegated acts on leverage and liquidity will be adopted by the Commission.
The Commission is publishing the text of the ITS in order to help all interested parties to prepare for the first submission of supervisory reports under the new requirements for Supervisory Reporting.
Additional information is available on the web-site of European Banking Authority: http://www.eba.europa.eu/regulation-and-policy/supervisory-reporting
- ITS Reporting templates
- Act – Commission Implementing regulation laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council
- Annex I – Reporting on own funds and own funds requirements
- Annex II – Reporting on own funds and own funds requirements
- Annex III – Reporting financial information according to IFRS
- Annex IV – Reporting financial information according to national accounting frameworks
- Annex V – Reporting on financial information
- Annex VI – Reporting on losses stemming from lending collateralised by immovable property
- Annex VII – Instructions for the reporting on losses stemming from lending collateralised by immovable property
- Annex VIII – Templates for reporting large exposures and concentration risk
- Annex IX – Instructions for reporting large exposures and concentration risk
- Annex X – Reporting on leverage
- Annex XI – Reporting on leverage
- Annex XII – Reporting on liquidity
- Annex XIII
- Annex XIV
- Annex XV – Validation formulae
Public Consultation on possible measures to strengthen bank capital requirements for counterparty credit risk
The Commission Services invited 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 were requested by 9 March 2011.
Consultation on countercyclical buffers
The services of the European Commission launched 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.
Public hearing on further possible changes to the Capital Requirements Directive (“CRD IV”) - April 2010
On 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 2010
On 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 2009
This consultation was closed on 4 September 2009.