Banking - CRD IV: objective and main content Flashcards
What is the relevance of the CRD IV for the internal market?
The Dir constitutes the essential instrument for the achievement of the internal market from the POV of both the freedom of establishment and the freedom to provide services in the field of CI
That is to say, the Dir tries to achieve the goal to make the operation of the internal market smooth in the field of CI’s by making legal rules and cooperation and convergence of supervisory practices of national authorities.
What is the banking union? - þarf að skoða betur
The Dir introduces steps towards a banking union - the concept revolves around more centralization in the banking union
What are the subject matters of the directive?
Access to the activity of institutions, i.e. CI and IF
Supervisory powers and tools for the prudential supervision of institutions by CA
Prudential supervision of institutions by CA in a manner that is consistent with the prudential requirements in CRR
Publication requirements for CA in the field of prudential regulation and supervision of institutions
What is the scope of the Dir?
Institutions:
-CI
-IF
–note difference regarding MiFID
Certain provisions apply to:
-certain financial institutions and financial holding companies
-Firms with limited authorization to provide investment services
-Local firms: Firms dealing for its own account on markets in financial derivatives for the sole purpose of heading positions
Exempt from the scope!!
Central banks
post office giro institutions
Certain financial entities in the EU Member States
What are CI’s
undertakings whose business is to :
to take deposits or other repayable funds from the public and to grand credits for its own account
What is a IF
Any legal person whose regular occupation or business is the provision of one or more investment services to third parties and/or the performance of one or more investment activities on a professional basis - MiFID
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What is the objective of the CRD IV?
to coordinate national provisions concerning access to the activity of CI’s and IF’s, governance and supervisory framework
To abolish discrimination and and restrictions relating to cross border establishment of banks and cross border provision of banking services
strengthen the internal market
enhance financial stability
foster economic growth
strengthen the competitiveness of the EU financial market in a global environment
What is a home state?
The MS in which an institution has been granted authorization
What is a host state
The MS in which an institution has a branch or in which it provides services
Why is there need for harmonization in the field of banking? What is the objective of the harmonization?
CRD harmonizes national rules so that mutual recognition of authorization and prudential supervision systems
Objective is to open up the market, ensure consumer protection and public confidence in the financial system and enhance stability
