Review of directive and regulation on banking prudential requirements

The Commission is working to improve the prudential rules in the EU to ensure growth and financial stability.

The review aims to ensure that

  • the rules are proportional to risk and consistent
  • prudential objectives and financial stability are preserved

Proposal to amend rules on banking prudential requirements

On November 2016 the Commission proposed amendments to the banking prudential requirements directive and regulation (known as CRD IV/CRR).

The amendments include measures that will

  • strengthen the resilience of the banking sector by introducing more risk-sensitive capital requirements
  • make banking prudential requirements rules more proportionate and less burdensome for smaller financial institutions
  • improve banks' lending capacity to support the EU economy.

For more information:

On 16 April 2019 the European Parliament endorsed the final agreement on a comprehensive set of reforms proposed by the Commission to strengthen further resilience and resolvability of EU banks.

Stakeholder consultations

As part of the review the Commission held 2 targeted consultations in May 2016 to gather stakeholders' views.

  • Consultation on proportionality in the future market risk capital requirements 
  • Consultation on the Net Stable Funding Ratio (NSFR) in the EU 

The Commission also held a public consultation in July 2015 to respond to reporting requirements under the banking prudential requirements regulation. 

  • Consultation on the potential impact of capital requirements rules on bank financing of the economy.