Banking Supervision

Amendments to the BRRD and the SRM regulation

Updated on 21/08/2019

State-of-play: Legislative phase.

Level 1

State-of-play: Legislative Phase.

Commission: Proposal was published on 23 November 2016.

  • On 30 April 2019, the Commission adopted the report on the review of the BRRD and SRMR

European Parliament

  • First exchange of views in ECON committee on 28 February 2017.
  • On 25 April 2017, ECON committee held a Public Hearing on updating BRRD and SRM.
  • On 3 May 2017, ECON committee held a Public Hearing on updating BRRD and SRM.
  • The proposal was split in two parts in order to fast track the ranking of unsecured debt part.
  • On 11 June 2017, the first exchange of views on the fast tracked ranking of unsecured debt part took place in ECON.
  • On 27 September 2017, the rapporteur publishes his draft reports (report 1 / report 2).
  • On 29 September 2017, the ECON Committee published two draft reports on the BRRD.
  • On 22 February 2018, the ECON Committee held a debate on the proposed amendments to the draft reports.
  • On-going negotiations around compromise amendments.
  • On 20 June 2018, the ECON Committee voted to adopt the draft reports amending the BRRD and the SRMR.
  • On 28 June 2018, the plenary confirmed the committee vote and mandate to negotiate in trilogues.
  • On 16 April 2019, the European Parliament confirmed in plenary session the trilogue agreement.

Council:

  • Legislative work on-going in the respective working party.
  • Fast tracked proposals: On 7 December 2017 the Council adopts a directive on the ranking of unsecured debt instruments and a regulation on transitional agreements regarding the regulatory capital impact of IFRS 9.
  • On 25 May 2018, the ECOFIN Council reaches an agreement on a common position on the remaining parts of the RRM package in view of negotiations with the European Parliament and the Commission.

Trilogue negotiations

  • Agreement reached. On 4 December 2018 the ECOFIN Council endorses the political parts of the RRM package including the BRRD and SRMR and the whole text is approved at ambassador level on 15 February 2019. 

Official Journal

  • On 28 December 2017 Directive 2017/2399 (amending directive 2014/59 on the BRRD) was published in the Official Journal.
  • On 28 December 2017 Regulation 2017/2395 on transitional arrangements for the introduction on IFRS 9 was published in the Official Journal.
  • On 7 June 2019, the Official Journal published the Regulation amending the Regulation on loss-absorbing and recapitalization capacity of credit institutions and investment firms

NEXT STEPS

  • Formal adoption of the legislation (trilogue agreement)by Council.

 

Level 2

  • On 4 March 2019, Commission delegated regulation on the criteria for assessing the impact of an institution’s failure

Level 3

  • On 19 October 2018 ESMA published a letter to EFRAG on the endorsement process of IFRS 17 insurance contract.

Amendments to the Capital Requirements Regulation and Directive

Updated on 21/08/2019

State-of-play: Legislative phase.

Level 1

State-of-play: Legislative Phase.

 

Commission

  • Proposal was published on 23 November 2016.

 

European Parliament

  • First exchange of views in ECON committee on 28 February 2017. 
  • On 25 April 2017, ECON committee held a Public Hearing on updating CRR and CRD.
  • On 3 May 2017, ECON committee held a second exchange of views on updating CRR and CRD.
  • The proposal was split in two parts in order to fast track the IFRS9 part.
  • On 20 June 2017, the first exchange of views on the fast tracked IFRS9 part took place in ECON.
  • On 11 July 2017, the ECON Committee adopted its position on the fast tracked IFRS9. It should be voted in the next plenary session in September.
  • On 16 November 2017, the rapporteur publishes his draft report on the CRD.
  • On 11 December 2017, the rapporteur publishes his draft report on the CRR.
  • On 22 February 2018, the ECON Committee discuss amendments to the draft reports.
  •  On 19 June 2018, the ECON Committee adopted the draft reports on the CRR II and the CRD V.
  •  On 28 June 2018, the plenary confirmed the committee vote and mandate to negotiate in trilogues.
  •  On 16 April 2019, the EP plenary session confirmed the trilogues agreement. Link 1  Link 2 

 

Council

  • On 25 May 2018, the Council agreed on a common position on the CRR and the CRD in view of negotiations with the European Parliament and the Commission.
  • On 4 December 2018, the ECOFIN  Council endorsed the political parts of the package of measures on the Banking Union, more specifically on measures to reduce risk. On 15 February the Council at ambassador level endorses the whole text of the banking package.
  •  On 14 May 2019 the Council adopted a package which contains amendments to the capital requirement legislation

 

Level 2

 

  • On 21 May 2019, ESMA published an amendment to the Implementing Technical standards on the mapping on ECAIS under CRR.
  • On 24 May 2019, ESMA published a consultation paper proposing amendments to the main indices and recognized exchange under CRR.
  • On 7 June 2019, EIOPA re-consults on new amendments to technical standards on the mapping of ECAIs
  • On 7 June 2019, the Official Journal published the Regulation of 20 May 2019 amending Regulation as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties exposures to collective investment undertakings, large exposures, reporting and disclosure requirements.

 

Level 3 

 

EBA

  • On 1 August 2017, EBA publishes an opinion on Article 458
    CR Regulation
    Directive 
  • On 20 December 2018, EBA published a preliminary assessment on post-implementation impact of IFRS 9 on EU institutions. 
  • On 17 January 2019, EBA published the final guidelines regarding the type of exposures to be associated with high risk under the CRR.

 

Reform of banking structure

Updated on 21/08/2019

State-of-play: Withdrawn. on 3 July 2018

Level 1

 

State-of-play: Withdrawn on 3 July 2018.

 

Commission

  • Proposal published on 29 January 2014. In its 2018 working programme, the Commission announces the withdrawal of the proposal.

 

European Parliament

  • A first amended draft report, put to a vote on 26 May 2015, was rejected. Negotiations have come to a stand still since Autumn 2016.

 

Council

  • The ECOFIN Council adopted its General Approach on 19 June 2015.
  • On 3 July 2018, the Commission withdrew the Commission proposal and the legislative process is therewith abandoned.

Review of the European Supervisory Authorities (ESAs)

Updated on 21/08/2019

State-of-play: Legislative phase.

Level 1

State-of-play: Legislative phase.

 

Commission

  • Publication of consultation on 21 March 2017. Deadline: 16 May 2017.
  • On 20 June 2017, the Commission published a feedback statement on the public consultation.
  • On 20 September 2017, the Commission published its legislative proposals. Link to ESA Review.
  • On 1 April 2019, the Commission has published the fact sheet on the ESAs review explaining the rational for the proposal and the key features.

 

Council

  • On 19 December EU ambassadors reach an agreement on the AML part of the package. Work on-going in the Council working party on the rest. On 22 December exchange of views in ECOFIN on the way ahead.
  • On 12 February 2019 the Council has adopted its general approach on ESAs.

 

European Parliament

  • Has nominated B. Balz and P. Berès as co-rapporteurs and initiated its works.
  • On 23 January 2018 the ECON Committee published a working document on the ESA Review.
  • On 10 July 2018, the co-rapporteurs issued their draft report
  • In early September Othmar Karas (EPP, AT) takes over as co-rapporteur from Burkahad Balz who left the European Parliament for the German Bundesbank. 
  • On 12 September 2018 ECON Committee published amendments on ESAs Review- Link 1   Link 2
  • On 14 September 2018 ECON Committee published amendments on ESAs Review
  • On 31 October 2018 ECON published amendments on the AML part of the package: 
  • On 14 January 2019 ECON published the report on ESAs as voted in the committee.

 

Trilogue negotiations

  • First meetings held on 14, 21 and 27 February 2019. Meetings scheduled for 12 March.
  • The European Parliament and the Council have reached an agreement on the 21stof March 2019.
  • On 16 April 2019, the EP plenary session confirmed the trilogues agreement.

 

NEXT STEPS

  • The Council has to formally adopt the text, followed by its publication in the OJ.

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