Capital Requirements Directives
| European Union directive | |
| Text with EEA relevance | |
| Title | on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms |
|---|---|
| Made by | European Parliament and Council |
| Made under | of the TFEU. |
| Journal reference | OJ L 176, 27.6.2013, p. 338–436 |
| History | |
| Date made | 26 June 2013 |
| Implementation date | 18 July 2013 |
| Applies from | 31 December 2013 |
| Preparative texts | |
| EESC opinion | |
| Other legislation | |
| Replaces | Directive 2006/48/EC and Directive 2006/49/EC (among others) |
| Amends | Directive 2002/87/EC |
| Amended by | Directive 2014/17/EU and Directive 2014/59/EU |
| Current legislation | |
The Capital Requirements Directives (CRD) for the financial services industry have introduced a supervisory framework in the European Union which reflects the Basel II and Basel III rules on capital measurement and capital standards.
Member States have progressively transposed, and firms of the financial service industry thus have had to apply, the CRD from January 1, 2007. Institutions were allowed to choose between the initial basic indicator approach, which increases the minimum capital requirement in Basel I approach from 8% to 15% and the standardized approach, which evaluates the business lines as a medium sophistication approaches of the new framework. The most sophisticated approaches, Advanced IRB approach and AMA or advanced measurement approach for operational risk were available from January 2008. From this date, all concerned EU firms had to comply with Basel II.
The new CRD IV package entered into force on 17 July 2013: this updated CRD simply transposes into EU law the latest global standards on bank capital adequacy commonly known as Basel III, which builds on and expands the existing Basel II regulatory base. CRD IV commonly refers to both the EU Directive 2013/36/EU and the EU Regulation 575/2013.
The Capital Requirements Directives superseded the EU's earlier Capital Adequacy Directive that was first issued in 1993.
In 2000, seven Banking Directives and their amending Directives were replaced by one single Banking Directive (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 (Directive 2006/48/EC) and the Capital Adequacy Directive (Directive 93/6/EEC) on the other hand (Directive 2006/49/EC). 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.
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