Council agrees bank structure mandate: The Council has agreed its negotiating position on the draft Regulation on bank structural reform. Key elements of the Council's position are:

  • the Regulation would apply to global systemically important institutions or to entities with total assets of at least €30 billion over the last three years and trading activities of at least €70 billion or 10% of their total assets. These would be divided depending on whether trading activities during the last three years exceed €100 billion. Stricter reporting requirements, a more thorough risk assessment and different supervisory actions would apply to banks exceeding the threshold;
  • the Regulation would not apply to institutions with total eligible deposits of less than 3% of their total assets, or total eligible retail deposits of less than €35 billion;
  • the Regulation would not initially apply to sovereign debt instruments but the Commission would review this; and
  • to provide two options for addressing excessive risk stemming from trading activities: either using national legislation requiring core retail activities to be ring-fenced, or through measures national regulators impose in accordance with the Regulation.

The Council said the incoming Luxembourg presidency could now start to negotiate with the European Parliament. (Source: Council Agrees Bank Structure Mandate)