Directive (EU) 2024/1619 ("CRDVI") amending Directive 2013/36/EU as regards supervisory powers, sanctions, third country branches, and environmental, social and governance risks, and Regulation (EU) 2024/1623 ("CRRIII") amending Regulation (EU) No 575/2013 as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor, together commonly referred to as the “Banking Package”, were published in the Official Journal of the EU on 19 June 2024. The main objective of the Banking Package is to finalise the implementation on the international Basel 3 standards in the European Union, and is applicable to credit institutions, systemic investment firms, financial holding companies and mixed financial holding companies. 

The requirements of the CRRIII are legally binding and are applicable as from 1 January 2025, while the provisions of the CRDVI need to be transposed into local legislation and shall apply from 11 January 2026, with a few derogations relating to the third country branches' framework which shall become fully applicable from 11 January 2027. 

Both texts include Member State discretions, giving Member States the option on whether to apply a given provision. In this regard, the objective of this consultation document is to gather the industry's and other stakeholders' feedback of the MFSA's proposed stance on the take up, or otherwise, of such discretions. Feedback is also being sought on a few additional aspects for the transposition of CRDVI and the implementation of CRRIII, outlining the MFSA's intended approach on specific provisions.