EBA: CRR2 may clarify reporting rules

Author: Olly Jackson | Published: 23 Aug 2018

The European Banking Authority (EBA) has said that the upcoming Capital Reporting Requirements (CRR2) may clarify which instruments banks can include in common equity tier 1 (CET1). This follows the recent annulment of a European Central Bank (ECB) decision on six French banks that special deposits should be reclassified.    

"Under the current negotiation of CRR2, co-legislators are discussing a potential clarification of this article on when a prior approval from the supervisor will be required, but we do not know the final text as yet," Delphine Reymondon, the EBA’s head of liquidity, leverage, loss absorbency and capital told IFLR.

The EBA has already publicly communicated that article 26.3 of the capital reporting requirements (CRR) regulation, which instruments banks can include as part of CET1 with the prior approval of the supervisor can be read differently, and that there are different supervisory approaches across the EU.