On 25 April 2024, the European Parliament issued a press release stating that it had adopted the text of the proposed Regulation amending the Capital Requirements Regulation as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor (CRR III) and the proposed Directive amending the Capital Requirements Directive IV as regards supervisory powers, sanctions, third-country branches, and environmental, social and governance risks (CRD VI). The legislative measures still need to be formally adopted by the Council of the EU. Following this they will be published in the Official Journal of the EU (OJ).

In terms of timing:

  • CRR III – The Regulation enters into force on the twentieth day following its publication in the OJ. Certain points of Article 1 of the Regulation apply when the Regulation comes into force. Otherwise, it applies from 1 January 2025.
  • CRD VI – Member States shall adopt and publish, by 18 months from the date of entry into force, the laws, regulations and administrative provisions necessary to comply with the Directive. The majority of those measures apply from 18 months + 1 day from the date of entry into force of the Directive.