To help businesses navigate harmonized prudential rules in the European Union's banking sector, the European Banking Authority this week launched an Interactive Single Rulebook through its web site.

The EBA's online tool, announced 6 June, is designed to ease compliance with the single set of prudential regulations throughout the bloc. The authority said the Single Rulebook is intended to ensure consistent application of the EU's regulatory framework for the banking industry.

The interactive tool covers the complete level one text for the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD IV), as well as related technical standards approved by the European Commission, EBA guidelines, and a host of Q&As related to the regulations.

Users can navigate from a particular legislative text for each article of the regulations, across the various technical standards or guidelines and other material related to each regulation.

The EBA said once the new Bank Recovery and Resolution Directive (BRRD), adopted by European Parliament in April, enters into force, it will be added to the online rulebook.

The Single Rulebook Q&A includes a number of changes, and the EBA is urging all stakeholders to read its additional guidance for asking questions. The major changes include:

·        Submitted questions will not be published until the answers are finalized, rather than while they are under review.

·        The EBA has stricter criteria for submitting questions. Rejected questions will be published for two months to help users determine the types of questions the authority deems unsuitable.

·        The Q&A pages have been reorganized with a better search function. Also provided are compilations of questions arranged by topic, such as own funds or credit risk. The EBA has a dedicated separate file on the Implementing Technical Standard for Supervisory Reporting due to the high amount of interest in that topic.

The compilations will be updated quarterly. The EBA said it will work closely with the European Commission to ensure consistency in the responses.

While the EBA acknowledged the Q&As are not binding under law or subject to “comply or explain,” the authority said it and national regulators would scrutinize their application due to “their undoubted practical significance to achieve a level playing field.”

“Peer pressure and market discipline are also expected to play a driving force in ensuring adherence to and compliance with the answers provided in the Q&A process,” the EBA said.

Questions beyond the scope of application of the regulatory framework will be answered by the directorate general for internal markets and services, but those responses will be unofficial and non-binding on the European Commission's positions.