On 22 October 2008, the European Council requested the European Central Bank (ECB) to provide an opinion on proposals for a Directive that would amend the Capital Requirements Directive (CRD).

On 5 March 2009, the ECB published its opinion.

The opinion starts with the ECB making certain general observations regarding the CRD. Among these observations the ECB states that most of the technical annexes to the CRD should be adopted directly as Level 2 legislative measures. The ECB also states that the proposed Directive introduces in the CRD express references to guidelines and recommendations of the Committee of European Banking Supervisors.

The ECB suggests that in some instances it might be advisable to convert these guidelines into Community legislation.

The ECB then provides specific observations covering:

  • Inter-bank exposures and implementation of monetary policy.
  • Liquidity issues.
  • Exchange of information and cooperation between central banks and supervisory authorities.
  • Colleges of supervisors.
  • The Community dimension of the mandate of national supervisory authorities.
  • Securitisation.

The ECB finishes its opinion with some additional legal and technical observations. The ECB notes that clearing, settlement and custody activities produce a certain type of exposure that should not be treated in a similar way to exposures resulting from normal inter-banking lending activities. Whilst the ECB believes that adequate mitigation and monitoring measures are in place to address potential risks associated with these activities, the ECB supports the exemption in the proposed Directive. The ECB has inserted drafting proposals in the opinion’s annex to clarify the exemption further.

View Opinion of ECB on a proposal for amending the Capital Requirements Directives, (PDF 87.4KB), 5 March 2009