Provisional political agreement reached on CRD V

The European Parliament and the Council of the European Union have reached a provisional political agreement on the banking package of reforms that will result in CRD V/ CRR II.

Proposed measures include more risk-sensitive capital requirements, in particular in the areas of market risk, counterparty credit risk and for exposure to central counterparties, and those designed to enhance the capacity of banks to lend to SMEs and to fund infrastructure projects.

The proposals are also intended to make some of the current rules relating to disclosure, reporting and complex trading book-related requirements more proportionate and less burdensome for smaller and less complex institutions.

Further technical talks to finalise the text are yet to be held, following which the final agreement will go to the Permanent Representatives Committee of the Council of Ministers and the European Parliament.