CRR II – 50% finalisation of Basel III and already 50% of Basel IV
After more than two years of intensive discussions and deliberations, the EU’s “Banking Package” was finalised on 14 February 2019 and is about to pass EU parliament on 15 April 2019.
The implementation of the Banking Package, consisting of significant amendments to the Capital Requirements Regulation (“CRR II”), the Capital Requirements Directive (“CRD V”), the Bank Recovery and Resolution Directive (BRRD II) and the Single Resolution Mechanism Regulation (“SRMR II”), is expected to be a major and challenging task. While the parliament’s vote will only be on 15 April 2019; it is inevitably clear that the changes will have to be dealt with by the banks as soon as possible. With such enormous changes, banks will find themselves running out of runway quickly.
From our point of view, the Banking Package will impact the banking industry on a larger and more intense scale than CRR/CRD IV (i.e. the predecessor of the Banking Package).