Hot topics: CRD IV
This practice note provides an overview of CRD IV (also referred to as CRD 4 or CRD4), a major package of reforms to the EU's capital requirements regime for credit institutions and investment firms. CRD IV will recast and replace the existing Capital Requirements Directive (2006/48/EC and 2006/49/EC) (CRD) with a new directive and regulation: the CRD IV Directive (2013/36/EU) and the Capital Requirements Regulation (Regulation 575/2013) (CRR).
The main role of CRD IV is to implement in the EU the key Basel III reforms agreed in December 2010. These include amendments to the definition of capital and counterparty credit risk and the introduction of a leverage ratio and liquidity requirements. For more information on Basel III, see Practice note, Basel III: an overview.
For information about the UK implementation of CRD IV and Basel III, see Practice note, Hot topics, UK implementation of CRD IV.
The key primary source material table in this document contains links to key primary source material and related Practical Law Financial Services legal updates. It is not intended to be an exhaustive list of all relevant materials published by interested parties.