Banking - legal framework and authorities Flashcards
What is the CRD?
Capital requirements directive
What dose the CRD IV do?
coordinates national provisions concerning:
-Access to the activity of CI and IF
-Governance
-Supervisory framework
What is the CRR
Capital requirements regulation
What dose the CRR do?
Establishes prudential requirements for CI and IF
Can further measures be taken on the grounds of the CRR and CRD? Þessi spurning er gölluð
Yes, they are framework measures that provide that further measures shall be adopted in certain areas
They can be in the form of implementing acts, technical standards, guidelines and recommendations
What are implementing acts?
CRD and CRR provide the commission with implementing powers in certain areas to ensure uniform conditions for the implementationof CRD and CRR
What are technical standards
CRD and CRR proved that technical standards shall be adopted i certain areas.
they are developed by EBA and aim to ensure consistent harmonization in specific areas. They do not imply strategic decisions of policy choices.
Two types:
Implementing technical standards
Regulatory technical standards
What are guidelines and recommendations?
CRD and CRR provide that guidelines or recommendations shall or may be adopted in certain areas
They are developed by EBA to:
- establish consistent, efficient and effictive supervisory practices.
-Ensure common, uniform and consistent application of the banking rules
- improve supervisory practices
They are addressed to CA and/or financial institutions
What is EBA?
The European baking Authority - established with the EBA regulation and is a part of the EU system of financial supervision (EBA, ESMA and EIOPA)
What is the tasks of EBA?
Development of technical standards to be endorsed by the commission
Issue guidelines and recommendations
Ensure consistent application of EU financial regulation
Take action in emergency situations by requiring national supervisors to jointly take specific actions under cross-border crises, for example.
Settla disagreement between national supervisors
promote a common European supervisory culture
Develop consistent supervisory practices
Collect micro-prudential information
Collaborate with European Systemic Risk Board (ESRB)
Dose EBA have powers with in the EEA?
Yes, and no.
The decisional powers have been moved from EBA to ESA. ESA’s decisions are based of recommendations from EBA
