The European Commission has launched two targeted consultations on some of the principles within the Capital Requirements Regulation and Directive (CRR/CRD IV).

CRR/CRD IV was named as the top regulatory measure that elicited comments as part of the EC's call for evidence on the EU regulatory framework for financial services.

Principle of proportionality

The first targeted consultation aims to gather stakeholders' views on the proposed options for implementing the principle of proportionality in the upcoming market risk capital framework; review the Original Exposure Method; and replace the current standardised approaches for counterparty credit risk by the new standardised approach for counterparty credit risk (SA-CCR).

The EC states that it is interested in the views of:

• institutions that currently use the standardised approach for market risk and/or for counterparty credit risk for the vast majority of their exposures, or that are currently eligible for the derogation for small trading books;
• the associations representing these institutions; and
• supervisory authorities.

Net Stable Funding Ratio

The second targeted consultation aims to gather views on the implementation of the Net Stable Funding Ratio (NSFR) in the EU. This consultation is particularly aimed at:

• financial institutions that could be impacted by the implementation of the NSFR at EU level;
• the associations representing their interests; and
• supervisory authorities.

Any queries can be submitted to the EC by 24 June 2016.