Skip to main content

ec.europa.eu: What is in today's banking package?

ec.europa.eu: What is in today's banking package?

round life buoy

Today we are clarifying how the current rules can be applied more flexibly and in a coherent manner across the EU, while maintaining a prudent approach so as to preserve financial stability. It provides a consistent and uniform interpretation of the flexibility in these rules, so that banks and supervisors are on the same footing across the EU. Today's package includes an Interpretative Communication on the EU's accounting and prudential frameworks (“Supporting businesses and households amid COVID-19”), as well as targeted “quick fix” amendments to EU banking rules (the Capital Requirements Regulation (CRR)).


What does the Interpretative Communication aim to do?
In its Communication of 13 March 2020 on a coordinated economic response to the Coronavirus pandemic, the Commission invited prudential and accounting authorities to further specify how to make best use of the flexibility provided for in the existing regulatory framework. These authorities have since provided guidance on how these rules should be applied in the EU.
What are the recommendations in today's Interpretative Communication? Can you give examples of flexibility in the EU's banking rules?
Following the financial crisis, the EU's financial system is far more robust and banks are better capitalised. The creation of the Banking Union in 2013, with more coordinated supervision and efforts to reduce risk in the banking system has greatly helped in terms of making the financial sector more resilient.
This is why the banking sector is now in a position to use the flexibility provided by prudential and accounting rules. This exceptional situation caused by the Coronavirus pandemic means that some of the rules can be used more flexibly at this time so that banks can focus on lending to households and companies.


Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

Who expands commercial vehicle battery business in Europe?

Who expands commercial vehicle battery business in Europe? The Chinese battery giant CATL has just signed a deal to provide VDL Bus & Coach with its high energy density battery system based on its standardized LFP-CTP (Cell to Pack) product platform. Furthermore, CATL appointed Quantron as its authorized sales and service partner for commercial vehicles and industrial applications in Europe. Firstly to CATL SME business in Europe: As an importer, Quantron is now authorised to supply batteries in Europe as a dealer for CATL. The German company specialises in the electrification of commercial vehicles and is now responsible for CATL battery sales and after-sales partner for commercial vehicles and industrial applications. Quantron will also rely on CATL batteries for its own retrofits in the future. According to CATL, its cooperation with Quantron is not intended to reach large OEMs – the Chinese company will continue to do this business directly. Such a deal has just bee...
Post a Comment
Read more

EU could finance €1.5 trillion recovery fund with bonds: Dombrovskis - Euractiv

EU could finance €1.5 trillion recovery fund with bonds: Dombrovskis - Euractiv The European Union could finance a recovery fund worth up to €1.5 trillion with bonds guaranteed by member states, European Commission Vice President Valdis Dombrovskis told German newspaper Handelsblatt. EU finance ministers last week agreed on a package of measures worth half a trillion euros to cushion the blow of the coronavirus pandemic but left unresolved the most contentious question of how to share the financial burden. The ministers also kicked into the long grass the question of how to pay for a temporary recovery fund for Europe because it goes to the heart of a disagreement over jointly issued debt. Asked about the possibility of financing such a fund with bonds amounting to up to 1.5 trillion euros, Dombrovskis said in an interview with Handelsblatt published Tuesday (14 April): “I could imagine such a financial framework. But nothing has been decided yet.” He said the recovery f...
Post a Comment
Read more

France is latest to unveil lockdown exit

France is latest to unveil lockdown exit More than half of humanity is under some sort of lockdown to stem the spread of the deadly pandemic, which has tipped economies toward a bruising global downturn. Over three million people are now infected worldwide and more than 211,000 have been killed since the virus first emerged in China late last year.  France said on Tuesday that shops, markets and some schools could reopen next month, the latest country to ease coronavirus restrictions as nations tread a fine line between allowing stalled economies to recover while staving off a new contagion. In France, Prime Minister Edouard Phillipe said would begin to be eased from May 11 -- some shops and markets could resume business, and primary schools and daycare centres would reopen gradually.  Face masks will be required on public transport, he said, and work-from-home orders will stay in place for several more weeks.  Meanwhile, Russia will consider a gradual e...
Post a Comment
Read more