The European Banking Authority (EBA) has published an opinion for the European Commission on the macro-prudential rules in the Capital Requirements Regulation (CRR) and the CRD IV Directive (CRD IV).
The opinion assesses whether the current rules are effective, efficient and transparent as well as the possible degrees of overlap across different macro-prudential tools and the consistency of the EU framework with global standards. The opinion also includes policy recommendations that the Commission should consider in its review of the macro-prudential tool kit.
The opinion recommends that the main macro-prudential rules to be improved are the framework for other systemically important institutions, the systemic risk buffer and the setting of risk weights and loss given default floors for exposures secured by mortgages on immovable property.
The opinion is intended to inform the Commission who will report to the European Parliament and the Council of the EU on these rules by the end of 2014, and where appropriate, submit a legislative proposal to both EU institutions.