CRD IV: Difference between revisions

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''Banking.''  
''Bank supervision - EU''.


A strengthened Capital Requirements Directive, the bulk of which took effect from early 2014.
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.
 
 
<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.''




== See also ==
== See also ==
* [[AT1]]
* [[Additional Tier 1]] (AT1)
* [[Capital Requirements Directive]]
* [[Bank supervision]]
* [[Basel II]]
* [[Basel II]]
* [[Basel III]]
* [[Basel III]]
* [[Capital]]
* [[Capital adequacy]]
* [[Capital adequacy]]
* [[Capital Adequacy Directive]]
* [[Capital Requirements Directive]]
* [[CET1]]
* [[Capital Requirements Regulation]]
* [[T2]]
* [[Common Equity Tier 1]]  (CET1)
 
* [[Counterparty risk]]
 
* [[CRD V]]
===Other links===
* [[CRD VI]]
[http://www.treasurers.org/node/9845: Regulation and the cost of capital, The Treasurer, February 2014]
* [[Credit risk]]
* [[Directive]]
* [[Fully loaded CRD IV]]
* [[Global Financial Crisis]]
* [[Leverage]]
* [[Liquidity]]
* [[Macroprudential]]
* [[Prudential Regulation Authority]]
* [[Tier 2]]  (T2) - Tier 2 capital


[[Category:Compliance_and_audit]]
[[Category:Compliance_and_audit]]

Latest revision as of 17:52, 25 June 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.


See also