The EU’s updated Capital Requirements Regulation is to be released at the end of June 2021, imposing stricter standards on banks and asset managers.
The EU ‘Banking Package’ beholds significant changes to the incumbent Capital Requirements Regulation (CRR) in the form of CRR II, as well as the Capital Requirements Directive (CRD V), the Bank Recovery and Resolution Directive (BRRD II) and the Single Resolution Mechanism (SRM II).
CRR II and CRD V are amendments to their predecessors, CRR and CRD IV. They are the legal framework for banking regulation in the EU. The changes can be broken into two categories: those that continue to implement Basel standards, and those that implement regulations outside the Basel standards.
Manoj Mistry, managing director at international banking alliance IBOS Association, has a word of advice for banks. “Set up an implementation programme aimed at co-ordinating the numerous projects to establish the reporting capability in the various CRR II topics,” he says. “Due in particular to the significantly increased data requirements of the CRR II calculation methods, there is a clear IT connection here, so that release cycles and the times planned for implementation and testing will have a strong influence on programme planning.”
Read the full article in Global Risk Regulator here.