Regulatory Watch
NFC continuously monitors the regulatory landscape and supports banks and credit market companies by analysing regulatory developments that affect their business. Below is an extract of the main banking regulatory news from the past quarter.
Top 3 Banking Regulatory News for Q2 2024
- Publication of CRR 3 and CRD 6 in the Official Journal
CRR 3 (https://eur-lex.europa.eu/eli/reg/2024/1623/oj) and CRD 6 (https://eur-lex.europa.eu/eli/dir/2024/1619/oj) was published in the Official Journal. The legislative package implements the Basel III agreement through several measures. It introduces an output floor to reduce fluctuations in banks” capital needs, with transitional rules extending until 2032. Capital risk management is strengthened, and specific rules for credit risk, market risk and operational risk are adapted to the specificities of the EU. ESG risks have received increased attention, and banks are required to draw up sustainability plans. The package also includes stricter rules for foreign banks in the EU, strengthened supervision and standardised fit and proper requirements for banks” management.
Read more: https://www.consilium.europa.eu/en/press/press-releases/2024/05/30/basel-iii-reforms-new-eu-rules-to-increase-banks-resilience-to-economic-shocks/
- Publication of AMLD6 and AMLR in the Official Journal
AMLD6 (http://data.europa.eu/eli/dir/2024/1640/oj) and AMLR (http://data.europa.eu/eli/reg/2024/1624/oj) was published in the Official Journal. The new legislative package transfers private sector rules into a directly applicable regulation and creates a directive for the organisation of national authorities fighting money laundering and terrorist financing. The regulation harmonises anti-money laundering rules across the EU, includes new sectors such as cryptocurrencies and football clubs, and sets a limit on cash payments of €10 000. A new European body (AMLA) is set up to monitor high-risk activities, and the directive ensures that national law enforcement authorities have access to centralised bank account registers to fight crime.
Read more: https://www.consilium.europa.eu/en/press/press-releases/2024/05/30/anti-money-laundering-council-adopts-package-of-rules/
- Financial Supervisory Authority calibrates the P2G buffer
Finansinspektionen reports the calibration that will be applied to the sensitivity-based stress test that forms the basis for the Pillar 2 guidance for Swedish banks. In connection with a supervisory review and evaluation process (SREP) of an institution, FI shall notify the institution of Pillar 2 guidance. In order to determine the size of the guidance, FI uses a sensitivity-based stress test that calculates the reduction in the capital ratio that the bank could experience based on a number of assumptions and methodological choices. The appendix below contains more information about the calibration that will be applied from 29 April 2024.
Read more: https://fi.se/sv/publicerat/sarskilda-pm-beslut/2024/kalibrering-av-stresstest-for-pelare-2-vagledning-2024/
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