The application of these measures will, however, be subject to the procedures set out in the Capital Requirements Directive (CRD IV). As you may be aware, the CRD IV will consist of a Directive and a Regulation. The legislative package is currently being finalised under the trilogue process and political agreement is expected to be reached soon.
This year, we have commenced the gradual phase-down of ultra-high reserve requirements to promote the efficiency of monetary policy. Amid changes in financial market conditions and increasing sophistication of financial services, we recognized a growing need for financial regulations to adapt, or else risk irrelevance.