Legal & Regulatory News

European Central Bank publishes opinion on proposed CRD6

On 27 April 2022, The European Central Bank (the ECB) published an opinion statement on the EU Commission's proposed amendments to the Capital Requirements Directive (CRD 6) regarding supervisory powers, sanctions, third-country branches and ESG risk.

The reforms constitute part of the EU Commission's 'Banking Package' and the ECB noted its broad support for the package. In the statement, the ECB categorises its opinions on the green transition, the governance of banks and regulation of third-country branches, setting out key considerations and proposed amendments as below:

• clarifying the prevention of double counting of risks and unwarranted changes in prudential requirements;
• ensuring proper framework is proportionate;
• clarifying how to calculate assets for assessing thresholds for third-country branches and enhancing the scope of reporting requirements;
• clarifying the list of core banking services requiring third country undertakings to establish a branch or subsidiary within the EU, considering existing requirements and the impact on global liquidity;
• further coordination between existing and proposed supervisory powers; and
• clarifying the disclosures process for small, non-complex institutions as well as others.

Click here to view the ECB's opinion statement.