On 1 December 2021, the European Commission published a call for evidence regarding a review of macroprudential rules for the EU banking sector to limit systematic risk.
The Commission has issued the call to collect evidence on how the EU’s macroprudential framework is functioning for the banking sector and on ways to improve it. The evidence gathered will help the Commission assess whether the EU’s macroprudential framework is working as intended and to identify potential improvements.
The policy options are as follows:
- Option 1 – no change, the macroprudential provisions in the Capital Requirements Regulation (CRR) and Capital Requirements Directive IV (CRD IV) would be left unchanged and problems would remain unaddressed.
- Option 2 – streamlined and more transparent use of the current CRR and CRD IV provisions. Clarify how they should be used to address particular systematic risk and foster more transparency and comparability of Member States’ use of macroprudential measures.
- Option 3 – upgrading the framework. Same as option 2, but adding provisions related to macroprudential risks and tools not yet covered in EU legislation or national legislative frameworks.
- Option 4 – a macroprudential framework for the entire financial sector, by adopting a new and dedicated legal instrument, deigned to address systematic risks in a holistic and cross-sectoral way.
The deadline for feedback is 18 March 2022.