On 24 March 2022, the European Central Bank (ECB) published an opinion on a proposal for a Regulation amending the Capital Requirements Regulation (CRR) as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor. The ECB has published this opinion following requests from the European Parliament and the Council of the European Union.

Generally the ECB welcomes the proposed Regulation which seeks to implement the outstanding Basel III reforms in the EU.

The ECB also provides more detailed views on the following elements of the proposed Regulation:

• Introduction of the output floor.
• Credit risk framework – standardised approach.
• Operational risk.
• Market risk.
• Credit valuation adjustment risk.
• Internal Ratings Based approach.
• Pillar III disclosures and reporting.
• Environmental, social and governance risks.