CRD IV: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Update.) |
imported>Doug Williamson (Add link.) |
||
Line 34: | Line 34: | ||
* [[Counterparty risk]] | * [[Counterparty risk]] | ||
* [[CRD V]] | * [[CRD V]] | ||
* [[CRD VI]] | |||
* [[Credit risk]] | * [[Credit risk]] | ||
* [[Directive]] | * [[Directive]] |
Revision as of 17:25, 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:
- 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.