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CRD IV/CRR

Capital Requirements Directive IV/Capital Requirements Regulation (CRD IV/CRR)

The Capital Requirements Directive IV/Capital Requirements Regulation (CRD IV/CRR) builds on the lessons learnt from the recent crisis. The financial crisis revealed vulnerabilities in the regulation and supervision of the banking system at a European and at a global level. Institutions entered the crisis with capital of insufficient quantity and quality and, in order to safeguard financial stability, governments had to provide unprecedented support to the banking sector in many countries.

Objective

The overarching goal of the new rules is to strengthen the resilience of the EU banking sector so it would be better placed to absorb economic shocks while ensuring that banks continue to finance economic activity and growth.

Time line

CRD IV/CRR contain various review clauses which will lead to updates and amendments. A proposal is expected soon.

CRD IV/CRR: The highlighted parts of the value chain are affected

EBA report calls for EU covered bonds directive

Frankfurt/Main

The European Banking Authority (EBA) published a report recommending how to harmonise covered bond frameworks in the EU. Inter alia, the Capital Requirements Regulation (CRR) should be amended to strengthen requirements for covered bonds seeking preferential capital treatment.

Clearstream: connecting the assets

Staff Clearstream

Regulation has pushed Clearstream into the forefront because it demands the segregation of collateral.

Legal basis

Find the most recent legal texts on this regulation here.

New CRD/CRR package to further strengthen EU banks’ resilience

Europe

The new proposals amend the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD) which were adopted in 2013 and which set out prudential requirements for credit institutions (i.e. banks) and investment firms and rules on governance and supervision.

Further information