On November 3, 2016, the European Central Bank launched a consultation on proposals to harmonize how Euro member state national regulators of less significant banks exercise the options and discretions available to them under the CRR and CRD. The ECB has already harmonized the application of options and discretions for the banks that it directly prudentially supervises under the Single Supervisory Mechanism. The ECB considers that it is appropriate to develop a harmonized approach of supervision for all banks within the SSM, to ensure the smooth functioning of the whole euro area banking system. To do so, the ECB is intending to adopt a Guideline, which would be legally binding, and a Recommendation, which would not be legally binding. The options and discretions relate to own funds requirements, capital requirements, large exposures, liquidity and transitional provisions. The consultation closes on January 5, 2017.
The proposed Guideline is available at:
https://www.bankingsupervision.europa.eu/legalframework/publiccons/pdf/ond_lsi/ond_lsi_guide.en.pdf?8bcc44a850bbdfb61b233d1e5b33227 , the proposed Recommendation is available at:
https://www.bankingsupervision.europa.eu/legalframework/publiccons/pdf/ond_lsi/ond_lsi_recommendation.en.pdf?bd87b1e27c2dd4e15fe1924878cee872 , and further information about the ECB's proposals is available at:
https://www.bankingsupervision.europa.eu/legalframework/publiccons/html/ond_lsi.en.html.
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