On 17 January 2022, the European Central Bank (ECB) issued an opinion on a proposal to amend the Capital Requirements Regulation (CRR) with respect to resolution.
The ECB supports the proposed regulation, which ensures better alignment between the provisions of the CRR and the Bank Recovery and Resolution Directive following the entry into force of the revised framework on Total Loss-Absorbing Capacity (TLAC) and the minimum requirement for own funds and eligible liabilities. The ECB further supports the proposed regulation in as much as it ensures better alignment of the regulatory treatment of global systemically important institutions with a multiple point of entry resolution strategy, including groups with subsidiaries registered in third countries, with the treatment outlined in the TLAC standard.
The ECB proposes some minor technical adjustments, with the purpose of clarifying the interpretation of the legal text or to ensure consistency of terminology used in the regulation. To this end, the ECB sets out a specific drafting proposal in a separate technical working document accompanied by an explanatory text. The technical working document is available in English on EUR-Lex.