Regulation (EU) No 575/2013 of the European Parliament and ...

WHAT DOES THIS REGULATION DO? It aims to strengthen the prudential requirements of banks, requiring them to keep sufficient capital reserves and ... × Skiptomaincontent ThisdocumentisanexcerptfromtheEUR-Lexwebsite Menu EUlaw Treaties Treatiescurrentlyinforce Foundingtreaties AccessionTreaties Othertreatiesandprotocols Chronologicaloverview Legalacts Consolidatedtexts Internationalagreements Preparatorydocuments EFTAdocuments Lawmakingprocedures SummariesofEULegislation BrowsebyEUInstitutions EuropeanParliament EuropeanCouncil CounciloftheEuropeanUnion EuropeanCommission CourtofJusticeoftheEuropeanUnion EuropeanCentralBank EuropeanCourtofAuditors EuropeanEconomicandSocialCommittee EuropeanCommitteeoftheRegions BrowsebyEuroVoc EUcase-law Case-law Digitalreports Directoryofcase-law OfficialJournal AccesstotheOfficialJournal Legallybindingprinteditions Specialedition Nationallawandcase-law Nationaltransposition Nationalcase-law JUREcase-law Information News LatestdevelopmentsonEUR-Lex Statistics ELIregister AboutELI Technicalinformation ELIimplementationoverview ResourcesforimplementingELI ELIhighlights ELItestimonials Legislationinschema.org EUbudgetonline Quicksearch Usequotationmarkstosearchforan"exactphrase".Appendanasterisk(*)toasearchtermtofindvariationsofit(transp*,32019R*).Useaquestionmark(?)insteadofasinglecharacterinyoursearchtermtofindvariationsofit(ca?efindscase,cane,care).     Searchtips Needmoresearchoptions?Usethe Advancedsearch Youarehere EUROPA EUR-Lexhome EUR-Lex-32013R0575-EN Document 32013R0575 Help ExportPDF Printthispage Text Documentinformation Procedure Documentsummary SavetoMyitems Up-to-datelink Permanentlink Bookmarkthisitem Expandall Collapseall Titleandreference Prudentialrequirementsforcreditinstitutionsandinvestmentfirms Languagesandformatsavailable Language BG ES CS DA DE ET EL EN FR GA HR IT LV LT HU MT NL PL PT RO SK SL FI SV   HTML en ToggleDropdown BG ES CS DA DE ET EL EN FR GA HR IT LV LT HU MT NL PL PT RO SK SL FI SV Multilingualdisplay Language1 English(en) Bulgarian(bg) Spanish(es) Czech(cs) Danish(da) German(de) Estonian(et) Greek(el) English(en) French(fr) Irish(ga) Croatian(hr) Italian(it) Latvian(lv) Lithuanian(lt) Hungarian(hu) Maltese(mt) Dutch(nl) Polish(pl) Portuguese(pt) Romanian(ro) Slovak(sk) Slovenian(sl) Finnish(fi) Swedish(sv) Language2 Pleasechoose Bulgarian(bg) Spanish(es) Czech(cs) Danish(da) German(de) Estonian(et) Greek(el) English(en) French(fr) Irish(ga) Croatian(hr) Italian(it) Latvian(lv) Lithuanian(lt) Hungarian(hu) Maltese(mt) Dutch(nl) Polish(pl) Portuguese(pt) Romanian(ro) Slovak(sk) Slovenian(sl) Finnish(fi) Swedish(sv) Language3 Pleasechoose Bulgarian(bg) Spanish(es) Czech(cs) Danish(da) German(de) Estonian(et) Greek(el) English(en) French(fr) Irish(ga) Croatian(hr) Italian(it) Latvian(lv) Lithuanian(lt) Hungarian(hu) Maltese(mt) Dutch(nl) Polish(pl) Portuguese(pt) Romanian(ro) Slovak(sk) Slovenian(sl) Finnish(fi) Swedish(sv) Display Dates Dateoflastreview: 07/10/2015 Initialcreationdate: 08/04/2014 Classifications Summarycode: 14.09.02.03Managingriskstobanksandfinancialinstitutions EUROVOCdescriptor: tradeinformation financialcontrol bankingpolicy private-sectorliquidity creditinstitution investmentcompany marketsupervision financiallegislation Directorycode: 06.20.20.20Rightofestablishmentandfreedomtoprovideservices/Sectoralapplication/Serviceactivities/Banks Summarizedandlinkeddocuments Summarizeddocument(s): 32013R0575 02013R0575-20230628 Miscellaneousinformation Author: PublicationsOffice Text Prudentialrequirementsforcreditinstitutionsandinvestmentfirms SUMMARYOF: Regulation(EU)575/2013-ensuringbanksandinvestmentfirmscontrolrisksandholdadequatecapital SUMMARY WHATDOESTHISREGULATIONDO? Itaimstostrengthentheprudentialrequirementsofbanks,requiringthemtokeepsufficientcapitalreservesandliquidity.Theoverallobjectiveistomakebanksmorerobustandresilientinperiodsofeconomicstress. KEYPOINTS Generally,theRegulationestablishesasinglesetofharmonisedprudentialruleswhichbanksthroughouttheEUmustrespect.Thisso-called‘SingleRuleBook’aimstoensureuniformapplicationofglobalstandardsonbankcapital(BaselIII)inallEUcountries. Specificpointsinclude: — Higherandbettercapitalrequirements.Bankshavetoholdatotalamountofcapitalthatcorrespondstoatleast8%oftheirassetsmeasuredaccordingtotheirrisks.Safeassets(e.g.cash)aredisregarded;otherassets(suchasloanstootherinstitutions)areconsideredmoreriskyandgetahigherweight.Themoreriskyassetsaninstitutionholds,themorecapitalithastohave. — Liquiditymeasures.Toensurebankshavesufficientliquiditymeans(e.g.cashorotherassetsthatcanbequicklyconvertedintocashwithnoorlittlelossofvalue),theregulationintroduces2liquiditybuffers: — theliquiditycoverageratiowhichaimstoensurethatbankshaveenoughliquiditymeansintheshortterm; — thenetstablefundingrequirementwhichaimstoensurethatbankshaveanacceptableamountofstablefundingtosupporttheirassetsandactivitiesoverthemediumterm. — Limitingleverageeffect.Theregulationintroducesanewregulatoryinstrumentcalledtheleverageratio.Itsaimistolimitbanksfromincurringexcessivedebtsonfinancialmarkets.From2015,bankshavetopubliclydisclosetheirleverageratio.Ifappropriate,theCommissionwillproposelegislationtomakethisnewratiobindingforbanksasof2018. TheRegulationispartofapackageoflegislation,includingaDirective,tostrengthentheresilienceoftheEUbankingsector.Directive2013/36/EUgovernstheaccesstodeposit-takingactivities,whilethisRegulationestablishestheprudentialrequirementsfinancialinstitutionsneedtorespect. WHENDOESTHISREGULATIONAPPLY? From28June2013. BACKGROUND EuropeanCommissionwebsiteoncapitalrequirementslegislation ACT Regulation(EU)No575/2013oftheEuropeanParliamentandoftheCouncilof26June2013onprudentialrequirementsforcreditinstitutionsandinvestmentfirmsandamendingRegulation(EU)No648/2012 REFERENCES Act Entryintoforce DeadlinefortranspositionintheMemberStates OfficialJournal Regulation(EU)No575/2013 28.6.2013 - OJL176,27.6.2013,pp.1-337 SuccessiveamendmentsandchangestoRegulation(EU)No575/2013havebeenincorporatedintheoriginaltext.Thisconsolidatedversionisofdocumentaryvalueonly. RELATEDACTS Directive2013/36/EUoftheEuropeanParliamentandoftheCouncilof26June2013onaccesstotheactivityofcreditinstitutionsandtheprudentialsupervisionofcreditinstitutionsandinvestmentfirms,amendingDirective2002/87/ECandrepealingDirectives2006/48/ECand2006/49/EC(OJL176,27.6.2013,pp.338-436) Regulation(EU)No648/2012oftheEuropeanParliamentandoftheCouncilof4July2012onOTCderivatives,centralcounterpartiesandtraderepositories(OJL201,27.7.2012,pp.1-59) lastupdate07.10.2015 Top