Regulation 2016/445 of the European Central Bank on the Exercise of Options and Discretions Available in Union Law (the NODE Regulation): A Milestone towards a Single Rulebook for all Banks in the EU?

Abstract

The following article was first published by Thomson Reuters (Professional) UK Limited in Vol. 31, Issue 8 of the Journal of International Banking Law & Regulation and remains topical in 2019 and beyond.

The “CRD IV Package”, covering the prudential regulation and supervision of EU credit institutions, contains a large number of national options and discretions. As the competent supervisor under the single supervisory mechanism of the Eurozone’s Banking Union, the European Central Bank is empowered to exercise the options and discretions available to supervisors under the CRD IV Package with regard to the significant credit institutions under its direct supervision. On 24 March 2016, Regulation 2016/445 of the Regulation 2016/445 of the European Central Bank on the exercise of options and discretions available in Union law was published in the Official Journal of the European Union (the NODE Regulation). This article gives a brief overview and legal explanation of the technical scope of the NODE Regulation, followed by a brief analysis as to whether it can help achieve the overarching aim of creating a Single Rulebook for financial services in the EU or for the Eurozone.

Keywords: Banking Union, EU Law, European Central Bank

JEL Classification: K00, K22