Council progress report
The Council of the EU has published a progress report concerning the:
- establishment of a European Deposit Insurance Scheme (EDIS);
- ‘Banking package’ (amendments to the Capital Requirements Regulation, Capital Requirements Directive IV, Bank Recovery and Resolution Directive (BRRD) and the Regulation on the Single Resolution Mechanism and the implementation of International Financial Reporting Standard 9 (IFRS 9) and the bank creditor hierarchy arrangements); and
- Action Plan to tackle non-performing loans (NPLs).
The Council Ad Hoc Working Party on the Strengthening of the Banking Union (Ad Hoc Working Party), which was established on 13 January 2016, has limited its examination of the EDIS proposal to technical aspects. During the Estonian Presidency, the Ad Hoc Working Party met three times: on 18 July, 25 September and 20 November 2017.
The ‘bank creditor hierarchy and the IFRS 9 and large exposures transitional arrangements’, which have been fast tracked, were successfully concluded at the political level with the European Parliament on 25 October 2017. The respective legal texts should be published in the Official Journal of the European Union before the end of the year.
In relation to NPLs, the Presidency of the Council considers that it would be beneficial if the European Commission provided an update on the state of play of implementation of the Action Plan. The update would be without prejudice to a comprehensive stock-take of the evolution of NPLs in the EU, to the restructuring of banking sectors and to the development of secondary markets for NPL transactions which, in accordance with the Action Plan, should take place at the January 2018 ECOFIN meeting.
Presidency compromise proposals
The Presidency of the Council of the EU has published the following compromise proposals for a:
- Regulation amending Regulation (EU) No 806/2014 as regards loss-absorbing and Recapitalisation Capacity for credit institutions and investment firms;
- Directive amending Directive 2014/59/EU on loss-absorbing and recapitalisation capacity of credit institutions and investment firms and amending Directive 98/26/EC, Directive 2002/47/EC, Directive 2012/30/EU, Directive 2011/35/EU, Directive 2005/56/EC, Directive 2004/25/EC and Directive 2007/36/EC;
- Directive amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures; and
- Regulation amending Regulation (EU) No. 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements and amending Regulation (EU) No. 648/2012.
European Parliament press release on Bank Creditor Hierarchy
The European Parliament has published a press release confirming that it has voted in plenary to adopt the proposed Directive amending the BRRD as regards bank creditor hierarchy. The next step is for the Directive to be formally adopted by the Council. The text adopted by the European Parliament has not yet been published.
View Council of the EU – Strengthening of the Banking Union – Progress report, 29 November 2017
View Presidency compromise – Proposal for a Regulation amending Regulation (EU) No 806/2014 as regards loss-absorbing and Recapitalisation Capacity for credit institutions and investment firms, 29 November 2017
View Final vote on new EU rules on who bears banks’ losses, 30 November 2017