Here is the rewritten article in markdown format:
European Union’s Banking and Financial Regulations: 2023-2024 Overview
===========================================================
The European Union (EU) has implemented various measures to strengthen its banking and financial regulatory framework. This report provides an overview of key developments, including:
Strengthening Regulatory Frameworks
Minimum Requirement for Own Funds and Eligible Liabilities (MREL)
The EU has strengthened MREL requirements for Global Systemically Important Institutions (G-SIIs) to ensure they have more loss-absorbing capacity. This enhancement aims to improve the resilience of these institutions in times of financial stress.
Key Regulatory Packages
EU Banking Package 2021
In October 2021, the EU adopted a comprehensive banking package that includes legislative proposals to amend the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD). These amendments aim to strengthen prudential requirements for banks and ensure they have sufficient capital buffers.
Investment Firms Package
The revised regulatory framework for investment firms introduced by the Investment Firm Regulation (IFR) and the Investment Firm Directive (IFD) was implemented into German law as of June 2021. This package aims to enhance risk management, improve transparency, and strengthen investor protection.
Digitalisation and Emerging Risks
Digital Operational Resilience Act (DORA)
The DORA is set to enter into force in January 2025, requiring financial entities to prevent and mitigate cyber threats and enhance digital operational resilience. This regulation aims to ensure that EU financial institutions are prepared for the increasing risks associated with digitalisation.
Markets in Crypto-Assets Regulation (MiCAR)
The MiCAR has entered into force in June 2023, with full implementation scheduled for December 2024. This directly applicable EU-wide regulation provides a unified regime on transparency, authorisation, and disclosure requirements for crypto-asset services. The aim is to ensure a consistent and secure environment for the development of the crypto-assets market.
Conclusion
The EU’s ongoing efforts to strengthen its financial regulatory framework reflect its commitment to addressing emerging risks and promoting digital innovation while maintaining financial stability. These developments demonstrate the importance of collaborative and forward-thinking approaches in shaping the future of European banking and finance.