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Newsletter Banking, Finance & Capital Markets, October 2020

German Risk Reduction Act New Licence Requirements for Financial Holding Companies and Intermediate EU-Parent Undertakings

On 29 July 2020, the German federal cabinet adopted the draft of a law implementing Directives (EU) 2019/878 and (EU) 2019/879
on the reduction of risks and the strengthening of proportionality in the banking sector (Risk Reduction Act – “RiG”).

The RiG serves to implement the so-called EU Banking Package and is expected to come into force by the end of 2020. The EU
Banking Package consists in particular of amendments to the following European legal acts: the Capital Requirements Regulation
(in the new version “CRR II”1), the Capital Requirements Directive (in the new version “CRD V”2), the Bank Recovery and Resolution Directive (“BRRD”3), and the Single Resolution Mechanism Regulation (“SRMR”4).


Newsletter Banking Finance & Capital Markets_October 2020_BEITEN BURKHARDT.pdf