Banking Package: 'Daisy Chain' Regulation Published In Official Journal

Regulation (EU) 2022/2036 (the 'daisy chain' regulation which introduces targeted adjustments to improve the resolvability of banks) has been published in the Official Journal.

Part of the European Commission's October 2021 Banking Package, the new Regulation will amend the Capital Requirements Regulation (CRR) and make consequential changes to the Bank Recovery and Resolution Directive (BRRD). It will amend the current EU bank resolution framework by:

• incorporating a dedicated treatment for the indirect subscription of instruments eligible for internal minimum requirement for own funds and eligible liabilities (MREL);
• further aligning the treatment of global systemically important institution (G-SII) groups with a multiple-point-of-entry (MPE) resolution strategy with the treatment outlined in the Financial Stability Board's international Total Loss-absorbing Capacity (TLAC) Term Sheet;