On the 16th of October 2014, the European Commission requested that Cyprus, Italy, Lithuania, Poland, Portugal and Slovenia fully implement Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.
The prudential requirements for institutions established in the European Union are laid down in Regulation (EU) No 575/2013 (also known as the Capital Requirements Regulation or CRR) and in Directive 2013/36/EU (also known as the Capital Requirements Directive or CRD). The CRR lays down the rules on the amount of capital that institutions must have in order to cover potential losses due to the risks they are exposed to, on liquidity, on leverage and on disclosure. The CRD lays down the rules on the licensing of institutions, on the supervision of institutions, on supervisory cooperation, on risk management, on corporate governance (including remuneration) and on capital buffers.
The deadline for the implementation of the Directive in national law was 31 December 2013. However, Cyprus, Italy, Lithuania, Poland, Portugal and Slovenia have so far not notified implementing measures to the Commission. The Commission’s request takes the form of a reasoned opinion, the second stage of the EU infringement procedures. If the measures to fully enact Directive 2013/36/EU are not notified within two months, the Commission may decide to refer Cyprus, Italy, Lithuania, Poland, Portugal and Slovenia to the EU Court of Justice.
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Theodorou Law Firm is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law.