The European Commission has opened a consultation on a draft Communication that would clarify how banks can apply more favourable prudential treatment under the Capital Requirements Regulation (CRR) to equity investments made under qualifying legislative programmes. Legislative programmes established by EU and national laws combine public and private financing to support businesses in specific sectors. Where banks are authorised to invest in equity under such programmes, they may benefit from reduced capital requirements compared with other equity exposures. The draft guidance is intended to promote consistent application of the CRR rules across the single market and to set out eligibility conditions for the favourable treatment, including the presence of significant public subsidies or guarantees and oversight by public authorities. Stakeholders can submit feedback until 8 September 2025, and the Communication is expected in the fourth quarter of 2025.
European Commission 2025-07-22
European Commission launches consultation on draft CRR guidance for banks’ equity investments under legislative programmes
The European Commission has launched a consultation on a draft Communication to clarify favourable prudential treatment under the Capital Requirements Regulation (CRR) for banks' equity investments in qualifying legislative programmes. Supported by EU and national laws, these programmes involve public and private financing to aid specific sectors, allowing banks reduced capital requirements. The draft ensures consistent CRR rule application and outlines eligibility conditions, including significant public subsidies or guarantees and public authority oversight.