The CRD IV package which transposes – via a Regulation and a Directive – the new global standards on bank capital (commonly known as the Basel III agreement) into the EU legal framework, entered into force on 17 July 2013.
On 20 July 2011, the Commission adopted a legislative package to strengthen the regulation of the banking sector. The proposal replaces the current Capital Requirements Directives (2006/48 and 2006/49) with a Directive and a Regulation and constitutes another major step towards creating a sounder and safer financial system. The directive governs the access to deposit-taking activities while the regulation establishes the prudential requirements institutions need to respect.
Public Consultation on possible measures to strengthen bank capital requirements for counterparty credit risk
The Commission Services invited views regarding possible measures in the area of counterparty credit risk, namely on: (i) capitalisation of exposures to central counterparties and (ii) the treatment of incurred credit valuation adjustments. Responses were requested by 9 March 2011.
Consultation on countercyclical buffers
The services of the European Commission launched a public consultation to seek stakeholders’ views on possible measures to mitigate fluctuations in the financial system by introducing counter-cyclical capital buffers for banks. Counter-cyclical capital buffers are variable capital reserves that banks would have to accumulate during economically good times. Banks could draw upon these reserves to continue lending and borrowing when economic conditions worsen. A regime for countercyclical capital buffers could also help to moderate the build up of excessive levels of credit in the financial system by raising the cost of credit, and so dampening demand, where there is evidence that levels are growing above established benchmarks.
Public hearing on further possible changes to the Capital Requirements Directive (“CRD IV”) - April 2010
On 26 April 2010, the European Commission hosted a public hearing on further possible changes to the Capital Requirements Directive (“CRD IV”). The event was open to all stakeholders who have responded to the consultation of February 2010.
Consultation of February 2010
On 26 February 2010 the European Commission invited views regarding further possible changes to the CRD. The proposed amendments relate to liquidity standards, definition of capital, leverage ratio, counterparty credit risk, counter-cyclical measures including through-the-cycle provisioning for expected credit losses, systemically important financial institutions and single rule book in banking. This consultation was closed on 16 April 2010.
Consultation of July 2009
This consultation was closed on 4 September 2009.