CRR/CRD | Banking package to facilitate lending to households and businesses in the EU
In “An Economy that Works for People”
Actions
Metadata
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Status:
Adopted / Completed
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Type:
Legislative
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In the spotlight:
C19
JD21
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Procedure:
2020/0066(COD)
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CWP:
2020
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Consultative bodies:
EESC
Rapporteur(s)
Sharing
On 29 January 2020 the European Commission published its new work programme.
Under the third priority - 'an Economy that Works for People', the Commission announced its intention to review the regulatory framework on bank capital requirements, set out in the capital requirements directive (CRD) and regulation (CRR), to complete the implementation of the international regulatory standards agreed within the Basel Committee on Banking Supervision (BCBS) in December 2017. These standards are known as 'Basel III finalisation'.
According to the January work programme, the reviewing proposals should be adopted in the second quarter of 2020. However, in reaction to the economic shock stemming from the COVID-19 pandemic, the BCBS has agreed a one-year delay in the deadline for implementing the final elements of the Basel III framework, at the same time allowing for a greater flexibility to the phase-in of the impact of the international financial reporting standard (IFRS) 9 on capital.
To reflect these changes in EU rules, the Commission postponed the adoption of the legislative proposals implementing the Basel III final elements (see Train 3) and on 28 April 2020 presented a proposal for a banking package increasing flexibility in prudential and accounting rules, in the context of the Commission's economic response to the COVID-19 crisis.
On 5 June 2020, the Council achieve agreement on a negotiating mandate with the European Parliament on the proposal.
On 10 June 2020, the Parliament's committee for economic and monetary affairs (ECON) tabled its report on the proposal for plenary. Parliament voted on the proposal in its plenary session of 18 June 2020.
The Council adopted the act on 24 June 2020. It was published in the Official Journal of the EU on 26 June 2020 and entered into force on the following day. It applies as of 27 June 2020.
References:
- EP Legislative Observatory, Procedural file on Capital Requirements Regulation: adjustments in response to the COVID-19 pandemic, 2020/0066(COD)
- Regulation (EU) 2020/873 of the European Parliament and of the Council of 24 June 2020 amending Regulations (EU) No 575/2013 and (EU) 2019/876 as regards certain adjustments in response to the COVID-19 pandemic
- European Commission, Proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 575/2013 and (EU) 2019/876 as regards adjustments in response to the COVID-19 pandemic, COM(2020) 310
Author: Carla Stamegna, Members' Research Service, legislative-train@europarl.europa.eu