CRD IV: Difference between revisions
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''Bank supervision''. | ''Bank supervision - EU''. | ||
CRD IV is the EU Capital Requirements Directive (CRD), 2013/36/EU, implementing Basel III in the European Union (EU). | CRD IV is the EU Capital Requirements Directive (CRD), 2013/36/EU, implementing Basel III in the European Union (EU). | ||
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:''The Treasurer magazine, April 2017, p24 - Nick Burge, MD, head of strategic liquidity at Lloyds Bank.'' | :''The Treasurer magazine, April 2017, p24 - Nick Burge, MD, head of strategic liquidity at Lloyds Bank.'' | ||
Proposals to update Capital Requirements Directive (CRD), to replace CRD IV, are referred to as CRD V. | |||
Revision as of 10:20, 9 January 2019
Bank supervision - EU.
CRD IV is the EU Capital Requirements Directive (CRD), 2013/36/EU, implementing Basel III in the European Union (EU).
It comprises 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.
The related rules and supervisory statements to implement CRD IV in the UK are set out in the Prudential Regulatory Authority (PRA)'s Policy Statement PS7/13.
The PRA's statement refers to the CRD and the related Capital Requirements Regulation (575/2013) as jointly comprising 'CRD IV'.
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.
Proposals to update Capital Requirements Directive (CRD), to replace CRD IV, are referred to as CRD V.
See also
- AT1
- Bank supervision
- Basel II
- Basel III
- Capital
- Capital adequacy
- Capital Adequacy Directive
- Capital Requirements Directive
- Capital Requirements Regulation
- CET1
- Counterparty risk
- CRD V
- Credit risk
- Directive
- Fully loaded CRD IV
- Global Financial Crisis
- Leverage
- Liquidity
- Macroprudential
- Prudential Regulation Authority
- T2
