Adoption of the new banking package – (CRR III/CRD VI)
The CSSF would like to draw the attention of the public to the publication of the new banking package (CRR III/CRD VI) in the Official Journal of the European Union on 19 June 2024.
The banking package amends Directive 2013/36/EU (CRD) and Regulation (EU) No 575/2013 (CRR).
Content
The banking package implements in the EU the outstanding elements of the Basel III regulatory reforms (i.e. output floor, credit risk, market risk, operational risk). It also introduces changes in other non-Basel key areas such as fit and proper, third country branches and environmental, social and governance (ESG) risks.
European Banking Authority (“EBA”) mandates
As part of the banking package, the EBA has received around 140 mandates to develop new regulatory products such as Implementing / Regulatory Technical Standards (“ITS”/”RTS”) and guidelines to strengthen the supervisory framework, provide clarity to the industry and ultimately ensure a level playing field.
Timelines
The CRR III and the CRD VI will enter into force on 9 July 2024 (i.e. the 20th day following their publication in the Official Journal of the European Union).
The CRR III will generally be applicable from 1 January 2025 (NB: some provisions will already start to apply from 9 July 2024). Some provisions of the CRR III are also subject to transitional arrangements and will be phased in over the coming years. With regard to the market risk rules and the so-called Fundamental Review of the Trading Book (FRTB), the European Commission announced on 18 June 2024 that the date of application of in the EU has been postponed by one year, to 1 January 2026. This delay will be adopted by way of delegated act later this year.
The CRD VI must be transposed into national law by Member States by 10 January 2026. In general, it will be applicable from 11 January 2026 apart from provisions on third-country branches applicable one year later, from 11 January 2027.
The documents are available under the following links:
CRR III: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202401623
CRD VI: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202401619
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27 June 2013
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013
on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Text with EEA relevance)EU regulation -
14 June 2019
Adoption of the risk-reduction measures package – Revised rules on capital requirements (CRR II/CRD V) and resolution (BRRD/SRM-R)
Press release 19/22Press release