CRD IV
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Bank supervision - EU.
CRD IV was the EU Capital Requirements Directive (CRD), 2013/36/EU, implementing Basel III in the European Union (EU).
It comprised prudential rules for financial institutions covering:
- Requirements on quality and quantity of capital;
- Rules for counterparty risk;
- A base for liquidity and leverage requirements; and
- Macroprudential standards.
CRD IV was updated by CRD V.
Loans raw material cost rises
- "Under CRD IV, the amount of capital that banks must hold against credit risk is now 2-2.5 x higher than it was pre-crisis.
- Given this increase in the raw material cost of manufacturing loans, lending has naturally become a more expensive process."
- The Treasurer magazine, April 2017, p24 - Nick Burge, MD, head of strategic liquidity at Lloyds Bank.
See also
- Additional Tier 1 (AT1)
- Bank supervision
- Basel II
- Basel III
- Capital
- Capital adequacy
- Capital Requirements Directive
- Capital Requirements Regulation
- Common Equity Tier 1 (CET1)
- Counterparty risk
- CRD V
- CRD VI
- Credit risk
- Directive
- Fully loaded CRD IV
- Global Financial Crisis
- Leverage
- Liquidity
- Macroprudential
- Prudential Regulation Authority
- Tier 2 (T2) - Tier 2 capital
