CRR3 Update: ECB Consultation on the approach to options and discretions available in EU law

With the implementation of the CRR 3 on January 1, 2025, the banking sector is gearing up for significant changes. As European banking rules allow Member States and banking supervisors to choose between alternative treatments (options) or how to apply certain provisions (discretions), the ECB consults on its revised policies on how the ECB will exercise the options and discretions available to supervisory authorities under EU law when supervising banks. These options and discretions relate to several prudential rules, such as the definition of own funds, the calculation of capital requirements for certain risk categories, the types of assets included in the trading book and the exclusions allowed when determining the consolidation scope of a banking group.
In our video we give an overview about the content of the 5 documents of the consultation paper. We shed light on the main challenges and critical aspects of ECB's consultation paper with regard to:
consolidated supervision and waivers, capital ratio and own funds, RWA and credit risk, market risk and CVA capital risk charge.
Follow-up videos will provide more detailed guidance and insights on these topics - stay tuned!

For more information please contact us:

Contact:
Martin Neisen
Partner FS Governance, Risk & Compliance
Head of EBA/SSM Office
[email protected]

Stefan Röth
Director FS Governance, Risk & Compliance
CRR3 Lead Germany
[email protected]