The Economic and Financial Affairs Council (ECOFIN) has broadly endorsed, on behalf of the Council, the outcome of the negotiations with EP on the new Capital Requirements Directive and Regulation (CRD4/CRR). The text agreed with EP includes:

  • flexibility for Member States to impose, for up to two years, stricter macro-prudential requirements on domestic institutions;
  • in addition to the capital and conservation buffers, the possibility for Member States to introduce a systemic risk buffer or buffers for systemically important institutions;
  • a 1:1 fixed to variable remuneration ratio, which can be raised to 2:1 with shareholders’ approval;
  • a requirement on firms to disclose number of employees and net banking income. European global systemically important institutions will also have to report on profits, taxes and subsidies; and
  • powers for EBA to mediate on its own initiative.

The desired deadline for application of CRD4 and CRR is 1 January 2014, but Member States would have to accept this if the period for preparation after publication of the adopted measures in the Official Journal of the EU were to be shorter than six months. (Source: Bank Capital Rules: Council Endorses Agreement with EP and Presidency Report to Council)