Updated: 15 March 2019
ESBG supported the review of the four above-mentioned legal texts and believes that it is a welcome opportunity to firmly entrench more proportionality in the legislative framework.
Priorities for ESBG included:
In the spirit of proportionality, it is crucial to agree on a definition of small and noncomplex institutions, encompassing all business models, and to grant proportional rules where appropriate;
In November 2016, the European Commission presented proposals to amend the following pieces of legislation: (i) the Capital Requirements Regulation (CRR), (ii) the Capital Requirements Directive IV (CRD IV), (iii) the Bank Recovery and Resolution Directive (BRRD) and (iv) the Single Resolution Mechanism Regulation (SRMR). The former, CRR and CRD IV, mainly set out capital and liquidity requirements for credit institutions and investment firms as well as rules on governance and supervision, while the latter two spell out the rules on the recovery and resolution of failing institutions, and establish the Single Resolution Mechanism (SRM). This legislative review is also referred to as ‘risk reduction measures package’.
An agreement was reached on the package during trilogue negotiations on 4 December 2018.