Deloitte comments on CRD IV banking regulations
27 June 2013
The fourth Capital Requirements Directive IV (CRD IV) and Capital Requirements Regulation (CRR) for banks was today published in the Official Journal of the European Union. Deloitte says the publication signals the end of the legislative process but the big challenge now will be implementation.
Vishal Vedi, risk and regulation partner at Deloitte, said:
“The final agreement on the CRD IV package was secured in April but EU banks faced uncertainty over the implementation timeline. Today’s publication confirms that the CRD IV package will take effect from 1 January 2014.
“The challenge for rule makers and banks is twofold. The first is the timeline faced by banks. Several provisions come into effect as early as next year, which means they have only six months to ensure they are compliant.
“The other challenge is the heavy workload the European Banking Authority (EBA), Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) face this year as they start to tackle critical rule-making tasks that CRD IV and CRR assign to them. The EBA will need to find the right balance between allowing enough time to consult with banks on technical standards and meeting challenging deadlines. UK regulators will have to embed the new requirements within their existing supervisory frameworks and take positions with regarding the significant number of national discretions available to them. ”
Notes to editors:
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The information contained in this press release is correct at the time of going to press.
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