Recital 1

(1)In the aftermath of the financial crisis that unfolded in 2007-2008, the Union implemented a substantial reform of the financial services regulatory framework to enhance the resilience of its financial institutions. That reform was largely based on international standards agreed in 2010 by the Basel Committee on Banking Supervision (BCBS), known as the Basel III framework. Among its many measures, the reform package included the adoption of Regulation (EU) No 575/2013 of the European Parliament and of the Council ⁴ and Directive 2013/36/EU of the European Parliament and of the Council ⁵ , which strengthened the prudential requirements for credit institutions and investment firms (institutions).