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The Council today1 broadly endorsed the outcome of the most recent political trilogue with the European Parliament2 on the so-called "CRD 4" package amending the EU's rules on capital requirements for banks and investment firms.
On that basis, it mandated the Permanent Representatives Committee to finalise negotiations with the Parliament on outstanding technical issues, with the aim of reaching a final deal in the second half of March.
The two proposals set out to amend and replace existing capital requirement directives3 by two new legislative instruments: a regulation establishing prudential requirements that institutions need to respect, and a directive governing access to deposit-taking activities.
They are aimed at transposing into EU law an international agreement approved by the G-20 in November 2010. The so-called "Basel 3" agreement, concluded by the Basel Committee on Banking Supervision, strengthens bank capital requirements, introduces a mandatory capital conservation buffer and a discretionary countercyclical buffer, and foresees a framework for new regulatory requirements on liquidity and leverage, as well as additional capital surcharges for systemically important institutions.
1 At a meeting of the Economic and Financial Affairs Council.
2 On 27 February
3 Directives 2006/48/EC and 2006/49/EC
