CRD IV Regulation

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Definition

CRD IV Regulation refers to the fourth iteration of European Union Capital Requirements Directives (CRD) applicable to parts of the financial services industry ( credit institutions). The CRD IV regulation[1] entered into force in 2013. It transposes into European law the Basel III recommendations (which superseded Basel II).

Main Compliance Items

  1. own funds requirements relating to entirely quantifiable, uniform and standardised elements of Credit Risk, Market Risk, Operational Risk, Settlement Risk and leverage;
  2. requirements limiting large exposures;
  3. liquidity requirements relating to entirely quantifiable, uniform and standardised elements of liquidity risk;
  4. reporting requirements related to points (a), (b) and (c);
  5. public disclosure requirements.


References

  1. EU Directive 2013/36/EU and the EU Regulation 575/2013