Publication of EU’s revised rules on capital requirements and resolution

Capital Requirements Regulation II introduces new requirements for UK G-SIBs and UK material subsidiaries of non-EU G-SIBs

A new Regulation (EU/2019/876) amending Regulation (EU/575/2013) as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, report and disclosure requirements, and Regulation (EU/648/2012) (CRR II) was published in the Official Journal of the European Union on 7 June 2019 - see Official Journal of the European Union, L 150, 7 June 2019

CRR II introduces new requirements for UK G-SIBs and UK material subsidiaries of non-EU G-SIBs in respect of ‘own funds and eligible liabilities’: some of these will enter into force on 27 June 2019, while other aspects will apply in later years. The Bank of England (the Bank), in its capacity as resolution authority, intends to communicate directly with affected firms in due course regarding these new ‘own funds and eligible liabilities’ requirements. The Bank’s Statement of Policy on the approach to setting a minimum requirement for own funds and eligible liabilities (MREL) should be read in compliance with the new CRR II requirements for those firms affected by the requirements. As previously communicated, the Bank is also committed to, before the end of 2020, reviewing the calibration of MREL, and the final compliance date, prior to setting end-state MRELs. In doing so, the Bank will have regard to any intervening changes in the UK regulatory framework as well as firms’ experience in issuing liabilities to meet their interim MRELs.  

Please refer to the Prudential regulation page for further information about changes required by the entry into force of some prudential aspects of CRR II in June 2019.

This page was last updated 10 June 2019
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