European Commission Proposal for Banking Regulation - CRD IV

Date Published 9/15/2011
Author European Commission

At the end of July 2011, the European Commission published its proposals for the European adaptation of Basel III. Contrary to the Basel III focus on “Internationally Active Banks”, the Commission proposes to extend the Scope of the CRD IV to all banks and investment firms active in the EU. The CRD IV consists of both a Capital Requirements Regulation, which includes harmonized prudential rules for banks and investment firms throughout the European Union, and a Capital Requirements Directive, which covers supervision of deposit-taking activities in areas where the degree of prescription is lower and where links with national administrative laws are important.This adaptation of Basel III to the European market includes important provisions for the mortgage industry, i.e., the recognition of covered bonds in the Liquidity Coverage Ratio, the calibration of the Net Stable Funding Ratio and Leverage Ratio and the risk weighting of mortgages.

Proposal for a Directive of the European Parliament and the Council

< Back to News