Jonathan Hill has spoken on the impact of the fourth Capital Requirements Directive and Regulation (CRD4 and CRR). He focused on the review of the CRR, explaining there is a requirement within it to carry out a review but it would be a good idea to do so anyway. He spoke about:

  • lending to small and medium-sized enterprises (SMEs), in particular CRR’s lesser capital requirements for bank lending to SMEs below €1.5 million. So far, there is no evidence that this is encouraging lending to SMEs, so the Commission is asking EBA to bring forward its report on the impact of this concession;
  • the impact of the CRR on the banking sector’s involvement in long-term investment and infrastructure projects; and
  • proportionality.

He said the Commission is looking also at how CRR options and discretions are being applied. (Source:Commission Speaks on CRR)