The Finalization of the EU Banking Package – A New Era for European Banking

The regulatory landscape for banks in Europe is undergoing a major transformation with the finalization of CRR III/CRD VI. These changes are not just about meeting new requirements—they will reshape how banks manage capital, assess risk, and ensure financial stability.

Key areas of impact:

• Stronger capital requirements, reducing reliance on internal models and increasing transparency.
• New risk management standards, particularly for credit, market, and operational risk.
• More robust liquidity and leverage frameworks to safeguard financial institutions.
• Introduction of Output Floors to prevent excessive reliance on internal models.
• A growing focus on ESG factors, reinforcing the shift towards sustainable finance.

This regulatory shift presents both challenges and opportunities. Banks must reassess their capital strategies, adapt to new compliance requirements, and align their business models with evolving risk frameworks. The financial sector is entering a new chapter—those who prepare effectively will be better positioned for long-term success.

Finalisation of the Banking Package