The Breach of Union Law Panel of the European Banking Authority (EBA) decided to close the breach of Union Law investigation (BUL) on Dutch supervisory regime governing proprietary traders it had opened against the Dutch Central Bank (DNB). The BUL panel’s conclusion followed the decision taken by the DNB on 13 November 2017 to redress the breach of Union law by terminating the current national prudential framework for traders for own account. The DNB will notify the EBA on capital conservation plans adopted by the firms concerned and the EBA will monitor the application of these transitional measures.
According to the DNB’s decision, the relevant firms will have until 31 March 2018 to meet the applicable capital requirements as laid down in the Capital Requirements Regulation (CRR). In case a firm cannot meet these requirements, it must draw up a capital conservation plan to be achieved by 31 December 2019, at the latest.
Notes to the editors
- The EBA’s BUL panel is made up of six representatives of the national competent authorities and is chaired by the EBA Chairperson.
- On 3 November 2017, the EBA Chairperson opened a BUL investigation in accordance with Article 17 of EBA’s Founding Regulation, into a possible breach of Union law by DNB related to the application by the DNB of the exception provided in Article 4 (1), subparagraph (4) of Regulation (EU) No 575/2013 of 26 June 2013, on prudential requirements for credit institutions and investment firms (CRR).