On 24 November 2010, the Council and the European Parliament officially adopted Directive 2010/76/EU on capital requirements for the trading book and for re-securitisations and the supervisory review of remuneration policies. Directive 2010/76/EU was to be implemented in two phases. The first, which affects the remuneration provisions, as well as a number of other ones dealing with the extension of some pre-existing minimum capital requirements, had to be implemented by 1st January 2011. The remaining provisions had to be implemented by 31st December 2011.
- Press release
- Frequently Asked Questions
- Directive 2010/76/EU
- Impact assessment:
- Citizens’ summary
Background documents: Consultation of April 2009
On April 2009, the Commission services requested feedback regarding possible changes to the CRD with regard to remuneration policies. Comments were requested by 6 May 2009.
The Commission services also requested feedback regarding possible CRD changes to strengthen capital and disclosure requirements for the trading book and for complex securitisations. Comments were requested by 29 April 2009.
On 16 September 2009, the Council and the European Parliament officially adopted Directive 2009/111/EC, which is part, together with Directives 2009/27/EC and 2009/83/EC, of the second legislative package aimed at ensuring the financial soundness of banks and investment firms. The main amendments introduced aimed at improving the management of large exposures, the quality of banks’ capital, the liquidity risk management and the risk management for securitised products. The ’colleges of supervisors’ were established for banking groups that operate in multiple EU countries. These amendments formed part of the Commission’s response to the financial crisis by strengthening the regulatory framework in those areas which were relevant to the causes of the crisis. The adjustments needed to be transposed into national law by 31st October 2010.
- Directive 2009/111/EC
- Impact assessment:
- Citizens’ summary
- Press release (01.10.2008)
- Frequently Asked Questions (01.10.2008)
In order to tackle technical questions related to the implementation of capital requirements, the Commission set up a working group called Capital Requirements Directive Transposition Group – CRDTG. The comitology procedure was used for the adoption of later adaptations, amendments to the annexes and the adoption of technical implementing procedures.
- Directive 2009/27/EC, officially adopted on 7 April 2009 set up the transposition deadline on 31 December 2010.
- Directive 2009/83/EC, officially adopted on 27 July 2009 set up the transposition deadline on 31 December 2010.
Background documents: Public consultations of 2008
- Proposed changes to Trading Book Capital Requirements
- Consultation document
- Summary of the responses
- Responses received
In 2000, seven Banking Directives and their amending Directives were replaced by one single Banking Directive (Codification) (2000/12/EC), which aimed to improve the clarity and transparency of the EU legislation and to create a kind of "European Banking Act".
The adoption of the Basel II guidelines in 2004 was followed at EU level by a recast of the Banking Directive on the one hand and the Capital Adequacy Directive (93/6/EEC) on the other hand.
These two Directives were officially adopted on 14 June 2006 and published in the Official Journal on 30 June 2006. Both Directives entered into force on 20 July 2006.
- Price Waterhouse Coopers study on the consequences of the draft proposed new capital requirements for banks and investment firms in the European Union (April 2004)
Monitoring and reporting
Article 156 of the Capital Requirements Directive (CRD) requires the Commission to periodically monitor whether the CRD has significant effects on the economic cycle. In the light of the examination, the Commission has to submit a biennial report together with any appropriate remedial measures to the European Parliament and to the Council. Up to now, there are two reports available: the first report of 2010 and the second report of 2012.
First Report (23 June 2010)
Second Report (17 July 2012)