Proposal for a Directive amending Directive 2013/36/EU as regards supervisory powers, sanctions, third-country branches, and environmental, social and governance risks, and amending Directive 2014/59/EU

Summary:

Legislative initiative tabled by the European Commission on 27 October 2021, introducing amendments to Directive 2013/36/EU and Directive 2014/59/EU. This is a text with EEA relevance.

Further information:

Directive 2013/36/EU - also known as the Capital Requirements Directive (CRD IV) - governs access to deposit taking by banks and investment firms. Directive 2014/59/EU establishes common rules in the European Union (EU) for the recovery and restructuring of failing banks.

This initiative has two general objectives: contributing to financial stability and contributing to the steady financing of the economy in the context of the post-pandemic economic recovery. These aims can be broken down in four more specific objectives:

• to strengthen the risk-based capital framework, without significant increases in capital requirements overall;
• to enhance the focus on environmental, social and governance (ESG) risks in the prudential framework;
• to further harmonise supervisory powers and tools;
• to reduce banks' administrative costs related to public disclosures and to improve access to banks' prudential data.

The proposal was put forward by the European Commission on 27 October 2021, as part of the so-called 2021 Banking Package.

• Primary Source

Official

European Commission: Press Release, 27/10/2021: Banking Package 2021: new EU rules to strengthen banks' resilience and better prepare for the future https://ec.europa.eu/commission/presscorner/detail/en/ip_21_5401

European Commission: Questions and Answers on the Banking Package 2021 (27 October 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_5386

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