Regulatory Alerts2021-07-08
Added · Updated
Transposition and Implementation of the CRDV Package
Credit institutions must maintain a minimum leverage ratio of 3%, a Net Stable Funding Ratio of 100%, and calculate large exposure limits based on Tier 1 capital. The document mandates the adoption of the Standardised Approach for Counterparty Credit Risk, with simplified or adjusted methods available for specific entities, and introduces new approval requirements for Financial Holding Companies. Capital requirements for SME exposures up to EUR 2.5 million are reduced by 23.81%, while Pillar 2 requirements must be met with at least 75% Tier 1 capital, of which 75% must be Common Equity Tier 1. The Authority may remove directors if money laundering is suspected and requires institutions to integrate these changes into their reporting frameworks and Internal Capital Adequacy Assessment Processes.