BETA

Awaiting committee decision



2016/0360(COD) Capital Requirements Regulation: leverage ratio, 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
RoleCommitteeRapporteurShadows
Lead ECON SIMON Peter (S&D) KARAS Othmar (EPP), FOX Ashley (ECR), VAN NIEUWENHUIZEN Cora (ALDE), CARTHY Matt (GUE/NGL), GIEGOLD Sven (Verts/ALE), VALLI Marco (EFD), ZANNI Marco (ENF)
Opinion ITRE
Opinion JURI
Lead committee dossier: ECON/8/08561
Legal Basis TFEU 114

Activites

  • 2017/02/01 Committee referral announced in Parliament, 1st reading/single reading
  • 2016/11/23 Legislative proposal published
    • COM(2016)0850 summary

Documents

History

(these mark the time of scraping, not the official date of the change)

procedure/Mandatory consultation of other institutions
Old
Economic and Social Committee
New
European Economic and Social Committee
activities/0/docs/0/celexid
CELEX:52016PC0850:EN
activities/0/docs/0/celexid
CELEX:52016PC0850:EN
activities/1/committees/0/shadows/4
group
Verts/ALE
name
GIEGOLD Sven
committees/0/shadows/4
group
Verts/ALE
name
GIEGOLD Sven
activities/1/committees/0/shadows/5
group
ENF
name
ZANNI Marco
committees/0/shadows/5
group
ENF
name
ZANNI Marco
activities/1
date
2017-02-01T00:00:00
body
EP
type
Committee referral announced in Parliament, 1st reading/single reading
committees
procedure/dossier_of_the_committee
ECON/8/08561
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision
committees/0/shadows/3
group
GUE/NGL
name
CARTHY Matt
procedure/Mandatory consultation of other institutions
Economic and Social Committee
committees/0/shadows/3
group
EFD
name
VALLI Marco
committees/0/date
2016-11-24T00:00:00
committees/0/rapporteur
  • group
    S&D
    name
    SIMON Peter
committees/0/shadows/2
group
ALDE
name
VAN NIEUWENHUIZEN Cora
activities/0/docs/0/celexid
CELEX:52016PC0850:EN
activities/0/docs/0/text
  • PURPOSE: to reduce financial institutions’ leverage, and strengthen their stable funding and trading book capital requirements.

    PROPOSED ACT: Regulation of the European Parliament and of the Council.

    ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with Council.

    BACKGROUND: in the aftermath of the financial crisis that unfolded in 2007-2008, the Union implemented a substantial reform of the financial services regulatory framework to enhance the resilience of its financial institutions. That reform was largely based on internationally agreed standards. Among its many measures, the reform package included the adoption of Regulation (EU) No 575/2013 (the Capital Requirements Regulation or CRR) and Directive 2013/36/EU (the Capital Requirements Directive) of the European Parliament and of the Council, which strengthened the prudential requirements for credit institutions and investment firms.

    While the reform has rendered the financial system more stable and resilient against many types of possible future shocks and crises, it did not address all identified problems.

    In its Communication of 24 November 2015, the Commission recognised the need for further risk reduction and committed bringing forward a legislative proposal that would build on internationally agreed standards.

    IMPACT ASSESSMENT: the Regulatory Scrutiny Board issued a positive opinion in September 2016 on a resubmitted impact assessment, following a negative opinion. The modelling has shown that public resources required to support the banking system in case of a financial crisis of the size similar to 2007 – 2008 would decrease by 32% – a decline from EUR 51 billion to EUR 34 billion.

    CONTENT: the proposal makes amendments to the Capital Requirements Regulation in order to complete the reform agenda by tackling remaining weaknesses and implementing some outstanding elements of the reform that are essential to ensure the institutions' resilience but have only recently been finalised by the Basel Committee on Banking Supervision and the Financial Stability Board (FSB).

    These amendments relate to:

    • a binding leverage ratio which will prevent institutions from excessively increasing leverage, e.g. to compensate for low profitability;
    • a binding net stable funding ratio (NSFR) which will build on institutions’ improved
    • funding profiles and establishing a harmonised standard for how much stable, long-term sources of funding an institution needs to weather periods of market and funding stress;
    • more risk sensitive own funds (i.e. capital) requirements for institutions that trade to an important extent in securities and derivatives which will prevent too much divergence in those requirements that is not based on the institutions' risk profiles;
    • new standards on the total loss-absorbing capacity (TLAC) of global systemically important institutions (G-SIIs) which will require those institutions to have more loss-absorbing and recapitalisation capacity, tackle interconnections in the global financial markets and further strengthen the EU’s ability to resolve failing G-SIIs while minimising risks for taxpayers.

    The proposed amendment to Regulation (EU) No 575/2013 (the Capital Requirements Regulation) is part of a legislative package that includes also amendments to Directive 2013/36/EU (the Capital Requirements Directive) and to Directive 2014/59/EU (the Bank Recovery and Resolution Directive) and to Regulation (EU) No 806/2014 (the Single Resolution Mechanism Regulation).

committees/0/shadows/0
group
EPP
name
KARAS Othmar
committees/0/shadows
  • group
    ECR
    name
    FOX Ashley
activities
  • date
    2016-11-23T00:00:00
    docs
    • url
      http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2016/0850/COM_COM(2016)0850(ANN)_EN.pdf
      type
      Legislative proposal published
      title
      COM(2016)0850
    type
    Legislative proposal published
    body
    EC
    commission
    committees
    • body
      EP
      responsible
      True
      committee_full
      Economic and Monetary Affairs
      committee
      ECON
    • body
      EP
      responsible
      False
      committee_full
      Industry, Research and Energy
      committee
      ITRE
    • body
      EP
      responsible
      False
      committee_full
      Legal Affairs
      committee
      JURI
    links
    other
      procedure
      reference
      2016/0360(COD)
      instrument
      Directive
      legal_basis
      • Treaty on the Functioning of the EU TFEU 114
      stage_reached
      Preparatory phase in Parliament
      summary
      subtype
      Legislation
      title
      Capital Requirements Regulation: leverage ratio, 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
      type
      COD - Ordinary legislative procedure (ex-codecision procedure)
      subject