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01 March 2012

Danish Presidency published latest compromise text on CRD IV/CRR


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The compromise text introduces a review by the Commission, after consulting with the EBA and the ESRB, by mid 2014 to assess whether the macro-prudential regulation contained in CRD/CRR is sufficient (Article 483a CRR).


Key elements of the Compromise text include:

  • The introduction of the possibility to introduce a systemic risk buffer requirement of CET1 in pillar 1 (Article 124a CRD) of up to 3 per cent in addition to the own funds requirement in Article 87 CRR in order to mitigate systemic risk. The designated authority in the Member State shall justify the introduction of a systemic risk buffer, and the Commission, taking into account the views of the ESRB, shall provide an opinion on the matter to the relevant designated authority. The SIFI-buffer in pillar II included in the first Presidency compromise proposal has been removed from the second proposal.
  • The introduction of the possibility to introduce a systemic risk buffer requirement of CET1 in pillar 1 (Article 124a CRD) above 3 per cent in addition to the own funds requirement in Article 87 CRR in order to mitigate systemic risk. The designated authority in the Member State shall justify the introduction of a systemic risk buffer, and the Commission, taking into account the views of the ESRB, can require the designated authority to amend or abolish the measure.

Compromise text (CRD IV)

Compromise text (CRR)



© European Council


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