CRD IV: Difference between revisions
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imported>Doug Williamson (Add quote. Source: The Treasurer, April 2017, p24.) |
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The PRA's statement refers to the CRD and the related Capital Requirements Regulation (575/2013) as jointly comprising 'CRD IV'. | The PRA's statement refers to the CRD and the related Capital Requirements Regulation (575/2013) as jointly comprising 'CRD IV'. | ||
<span style="color:#4B0082">'''''Loans raw material cost rises'''''</span> | |||
:"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.'' | |||
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* [[Basel II]] | * [[Basel II]] | ||
* [[Basel III]] | * [[Basel III]] | ||
* [[Capital]] | |||
* [[Capital adequacy]] | * [[Capital adequacy]] | ||
* [[Capital Adequacy Directive]] | * [[Capital Adequacy Directive]] | ||
| Line 28: | Line 39: | ||
* [[Counterparty risk]] | * [[Counterparty risk]] | ||
* [[CRD V]] | * [[CRD V]] | ||
* [[Credit risk]] | |||
* [[Directive]] | * [[Directive]] | ||
* [[Fully loaded CRD IV]] | * [[Fully loaded CRD IV]] | ||
* [[Global Financial Crisis]] | |||
* [[Leverage]] | * [[Leverage]] | ||
* [[Liquidity]] | * [[Liquidity]] | ||
Revision as of 09:23, 4 April 2017
Bank supervision
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.
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
Other links
Regulation and the cost of capital, The Treasurer, February 2014
