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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