Einde inhoudsopgave
Public funding of failing banks in the European Union (LBF vol. 19) 2020/1.4.1.1
1.4.1.1 The Banking Package
mr. M. Louisse-Read, datum 01-06-2020
- Datum
01-06-2020
- Auteur
mr. M. Louisse-Read
- JCDI
JCDI:ADS213863:1
- Vakgebied(en)
Financieel recht / Europees financieel recht
Staatssteun (V)
Voetnoten
Voetnoten
EC, Proposal for a Directive of the European Parliament and of the Council amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures, COM(2016)854 final (the CRD V Proposal), EC, Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 575/2013 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 and amending Regulation (EU) No 648/2012, COM(2016)850 final (the CRR II Proposal), EC, Proposal for a Directive of the European Parliament and the Council amending Directive 2014/59/EU on loss-absorbing and recapitalisation capacity of credit institutions and investment firms, COM(2016)852 final (BRRD II Proposal), EC, Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 806/2014 as regards loss-absorbing and Recapitalisation Capacity for credit institutions and investment firms, COM(2016)851 final (the SRMR II Proposal) and EC, Proposal for a Directive of the European Parliament and of the Council on amending Directive 2014/59/EU of the European Parliament and of the Council as regards the ranking of unse cured debt instruments in insolvency hierarchy, COM(2016)853 final (BRRD II bis Proposal).
Member States shall apply point (17) of Article 1 BRRD II, as regards Article 45i(3) BRRD from 1 January 2024. Where, in accordance with Article 45m(1) BRRD, the resolution authority has set a compliance deadline that ends after 1 January 2024, the application date of point (17) of Article 1 BRRD II as regards Article 45i(3) BRRD shall be the same as the compliance deadline.
FSB, Total Loss-absorbing Capacity (TLAC) Term Sheet, 9 November 2015.
However, the provisions necessary to comply with the amendments set out in point (21) and points (29)(a), (b) and (c) of Article 1 CRD V as regards Article 84 and Article 98(5) and (5a) CRD IV shall apply from 28 June 2021 and the provisions necessary to comply with the amendments set out in points (52) and (53) of Article 1 CRD V as regards Articles 141b, 141c and Article 142(1) CRD IV shall apply from 1 January 2022.
EP, Amending capital requirements – The ‘CRD V package’, PE 599.385, April 2019, p. 5-6.
On 23 November 2016, the Commission published a legislative package consisting of five proposals for amendment of the CRD IV, CRR, BRRD and SRMR (the Banking Package).1
The BRRD II bis Proposal was adopted and published as Directive (EU) 2017/2399 on 27 December 2017 (BRRD II bis). BRRD II bis had to be implemented by the Member States by 29 December 2018. This directive changes the definition of ‘debt instruments’ in the BRRD and replaces Article 108BRRD in respect of the ranking in insolvency hierarchy.
The BRRD II Proposal was adopted and published as Directive (EU) 2019/879 on 7 June 2019 (BRRD II). BRRD II has to be implemented by the Member States by 28 December 2020.2BRRD II, inter alia, amends the term ‘eligible liabilities’, introduces the terms ‘bail-inable liabilities’, ‘resolution entity’ and ‘resolution group’, amends the minimum requirement for own funds and eligible liabilities (MREL), aligns the MREL with the TLAC Standard3, provides for sanctions when the MREL is breached, introduces a new moratorium tool to be employed in the pre-resolution phase and provides for further protection when subordinated eligible liabilities are sold to retail clients.
The SRMR II Proposal was adopted and published as Regulation (EU) 2019/877 on 7 June 2019 (SRMR II). The SRMR II applies from 28 December 2020. It mirrors the amendments made by BRRD II to BRRD, but then for the SRMR.
The CRD V Proposal was adopted and published as Directive (EU) 2019/878 on 7 June 2019 (CRD V). CRD V has to be implemented by the Member States by 28 December 2020.4 This directive, inter alia¸ provides for streamlining the Pillar 2 capital requirements, clarifying the interaction between Pillar 2 add-ons, Pillar 1 requirements, the own funds and eligible liabilities requirement, the MREL and the combined buffers (the ‘stacking order’) and clarifying the distinction between Pillar 2 requirements and Pillar 2 capital guidance.5
The CRR II Proposal was adopted and published as Regulation (EU) 2019/876 on 7 June 2019 (CRR II). CRR II will apply from 28 June 2021 with a number of exceptions.6CRR II, inter alia, introduces a binding 3% leverage ratio and a harmonised binding net stable funding ratio. It also implements the TLAC Standard.