CRR, CRD and Single Rulebook

Based on proposals from the European Banking Authority (EBA), the European Commission has adopted various implementing regulations or Binding Technical Standards (BTS) under the CRR and the CRD. These consist of Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS). Together with the Guidelines that the EBA has also prepared, this EU regulatory package is referred to as 'the Single Rulebook’. The Single Rulebook consists of three levels.

Level 1

The CRR and the CRD adopted by the European Council and the European Parliament at the European Commission’s initiative constitute level 1. EU regulations (such as the CRR) have direct effect in the EU Member States, whereas EU directives (such as the CRD) must first be transposed into national law. In the Netherlands, the CRD has been transposed into the Financial Supervision Act (Wet op het financieel toezicht – Wft) and other rules based on the Wft, such as the Decree on Prudential Rules for Financial Undertakings (Besluit prudentiële regels Wft – Bpr).

Binding Technical Standards (BTS), consisting of Implementing Technical Standards and Regulatory Technical Standards, constitute level 2. Clarifying and detailing specific aspects of level 1 texts, they aim to foster harmonised application of the European rules. Mandated to draft BTS in tandem with national supervisory authorities, the EBA can propose that the European Commission endorses them, turning them into binding EU regulations with direct effect.

Level 3

The EBA is also authorised to draft Guidelines which further elaborate the provisions of the CRR and the CRD. The purpose of these Guidelines is to ensure consistent and uniform application of standards in European legislation in all EU Member States to the extent possible. Addressed to supervisory authorities and, in some cases, also directly to banks, they do not have the same status as binding European regulations. Guidelines are subject to a “comply or explain” requirement, which means that supervisory authorities such as DNB must indicate whether they include them in their supervision.

On its website, the EBA operates a documentation tool referred to as the Interactive Single Rulebook. It provides a comprehensive compendium of the level 1 texts as well as their associated delegated and implementing acts, RTS, ITS, guidelines and recommendations, and related Q&As EBA Interactive Single Rulebook

The European banking regulations (CRD, CRR, LCR, DR) contain several provisions that give supervisory authorities discretionary leeway in interpreting and applying regulatory requirements. We have published a factsheet (below) which explains how DNB deals with these options and discretions.
DNB’s policy with respect to options and discretions for banks.