Banking and Finance Newsletter - Transposition of CRD V and BRRD II Directives (Banking Package)

Law No. 23-A/2022 (the "Law") transposing two important Directives was published on December 9, 2022:

- Directive (EU) 2019/878, on access to the banking business and prudential supervision ("CRD V" or "Capital Requirements Directive V");

- Directive (EU) 2019/879 on the recovery and resolution of credit institutions and investment firms ("BRRD II" or "Bank Recovery and Resolution Directive II").

The transposition of these Directives carries a significant panoply of changes, in relation to CRD V, regarding exempt entities, approval of financial holding companies and mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures, internal governance and recovery and resolution plans, in relation to BRRD II, regarding the loss absorbing capacity and recapitalization of credit institutions and investment firms. The principle of the exclusive object of investment firms is maintained in the REI.