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Regulatory environment

The Single Supervisory Mechanism is subject to the European banking regulatory framework, which follows the Basel Accords and is harmonised through the single rulebook. This framework applies to all financial institutions in the Single Market.

International standards

Basel III

Basel III is an international regulatory framework that aims to strengthen the regulation, supervision and risk management of the banking sector.

It was developed by the Basel Committee on Banking Supervision and endorsed by the G20 in November 2010.

Basel III standards
Basel Committee publications

Basel III is being implemented in Europe through the CRD IV package of EU laws.

European regulatory framework

Single rulebook

Regulatory activity

The regulatory products of the European Banking Authority (EBA) range from binding technical standards to guidelines, recommendations and opinions. They cover areas such as own funds, recovery and resolution, internal governance and supervisory reporting.

EBA: Regulation and policy


Single rulebook

The single rulebook aims to ensure the consistent application of the regulatory banking framework across the EU. It is an interactive online compendium of the CRD IV package and the corresponding technical standards, namely:

  • Regulatory Technical Standards (RTS)
  • Implementing Technical Standards (ITS)

It also includes EBA guidelines and related Q&As.

EBA: Interactive single rulebook


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EBA: Q&A on the single rulebook

CRD IV package

The CRD IV package transposes Basel III standards into EU law and consists of a regulation and a directive. The package entered into force on 1 January 2014. Some of the new provisions will be phased-in between 2014 and 2019.

Capital Requirements Regulation (CRR)

CRR - corrected by corrigenda 1 and 2


Capital Requirements Directive (CRD IV)

CRD IV
Corrigendum 1


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European Parliament: Background note on CRD IV
European Commission: FAQ on CRD IV and CRR
European Commission: Delegated and implementing acts under CRR and CRD IV
European Commission: Banking Union
European Commission: Banking

Recovery and Resolution

Single Resolution Mechanism Regulation

The Single Resolution Mechanism Regulation establishes uniform rules and procedures for the resolution of banks within the framework of a Single Resolution Mechanism and a Single Resolution Fund.

Single Resolution Mechanism Regulation (SRMR)


Intergovernmental Agreement

The Intergovernmental Agreement on the transfer and mutualisation of contributions to the Single Resolution Fund.

Intergovernmental Agreement


Bank Recovery and Resolution Directive

The Bank Recovery and Resolution Directive establishes a framework for the recovery and resolution of banks and investment firms.

Bank Recovery and Resolution Directive


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European Commission: Crisis management

Deposit Guarantee Schemes

The recast of the Directive on Deposit Guarantee Schemes provides better protection for citizens' deposits in the case of bank failures.

Deposit Guarantee Scheme Directive


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European Commission: Deposit Guarantee Schemes

Financial Conglomerates Directive

The Financial Conglomerates Directive sets out the framework of supplementary supervision of financial entities in a financial conglomerate.

Financial Conglomerates Directive 1
Financial Conglomerates Directive 2
Financial Conglomerates Directive – Consolidated version