Banking Package 2021

Following a series of trilogue negotiations on the updated Banking Package, a political agreement was reached at the eleventh hour during the term of the Swedish Presidency of the Council of the EU. The agreement is currently ‘ad referendum’ as it still needs to be ratified by both the EU Council and the EU Parliament later this year. In the meantime, further technical discussions shall take place during the Spanish Presidency. The CRR III shall be applicable from 1 January 2025.

Work is currently ongoing at the EBA on the several mandates within the Banking Package, such as the publication of the relative technical standards and guidelines. We kindly recommend that, credit institutions take note and participate in public consultations that shall be published later this year and during 2024.

In the meantime, and until the final publication of the legislative texts under the Banking Package,  credit institutions are strongly encouraged to conduct the following checks:

• To ensure the accuracy of their risk-weighted assets calculations and assess the likely capital implications;
• To ensure that the appropriate systems, governance and controls are in place;
• To assess the operational implications and setting up of an adequate IT infrastructure;
• To assess the current data gaps and plans to mitigate such gaps; and
• To cultivate an ESG culture and ensure proper risk management with respect to such risks.