Summary
This proposal updates EU rules to ensure banks have enough capital and liabilities to absorb losses during a crisis. It aims to align European standards with global banking requirements to protect taxpayers. 10 03.07.2019
Other
finance
economy
european union
financial institutions and credit
Key points
- The proposal aligns European banking rules with the international Total Loss-Absorbing Capacity standard for major global banks.
- New legal definitions are introduced for 'resolution entities' and 'resolution groups' to clarify how banking groups are managed during a crisis.
- Institutions must meet specific capital and liability targets, with an intermediate target level required by early 2022 and full compliance by the start of 2024.
- Resolution authorities are granted the power to temporarily suspend certain payment and delivery obligations for up to two working days during a crisis.
Documents (PDFs)
REPORT on the proposal for a directive of the European Parliament and of the Council amending Directive 2014/59/EU on loss-absorbing and recapitalisation capacity of credit institutions and investment firms and amending Directive 98/26/EC, Directive 2002/47/EC, Directive 2012/30/EU, Directive 2011/35/EU, Directive 2005/56/EC, Directive 2004/25/EC and Directive 2007/36/EC
Loss-absorbing and recapitalisation capacity of credit institutions and investment firms (Directive) ***I
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