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Following a decision by the EBA's Board of Supervisors on 15 December 2014, the EBA Recommendation from July 2013 on the preservation of Core Tier 1 capital of EU banks during the transition to the CRD/CRR framework has been repealed and therefore is no longer into force.
The objective of the recommendation was to require EU banks to maintain the capital accumulated as the result of the 2011 EU-wide recapitalisation exercise, as well as to ensure a smooth transition towards the new CRR/CRD capital rules.
Major EU banks have significantly strengthened their capital position since 2011, with an average Common Equity Tier 1 capital ratio increasing from 9.2% to 11.8% in June 2014. As a consequence, many EU banks are already able to meet the minimum CRR/CRD fully loaded capital requirements, including the capital conservation buffer.