CRD IV: Difference between revisions

Revision as of 17:10, 26 March 2022

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:

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.

@@ Line 1: / Line 1: @@
 ''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 was 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:
+It comprised prudential rules for financial institutions covering:
 *Requirements on quality and quantity of capital;
 *Rules for counterparty risk;
@@ Line 10: / Line 10: @@
-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.
+CRD IV was updated by CRD V.
-The PRA's statement refers to the CRD and the related Capital Requirements Regulation (575/2013) as jointly comprising 'CRD IV'.
@@ Line 23: / Line 20: @@
 :''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.