Banking: Council agreement on creditor hierarchy, IFRS 9 and large exposures

On 16 June 2017, the Council agreed its stance on part of a package of proposals aimed at reducing risk in the banking industry, namely a draft directive on the ranking of unsecured debt instruments and a draft regulation on transitional arrangements to phase in the regulatory capital impact of the IFRS 9 international accounting standard

"These proposals set out to help make our banks more resilient to shocks in the light of new prudential standards agreed at international level. We have decided to make these texts a priority and hope the Parliament will be able to start negotiating by the end of this year", said Edward Scicluna, Minister for Finance of Malta, which currently holds the Council Presidency.