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Home > Prudential Regulation Authority > Capital Requirements Directive IV

Capital Requirements Directive IV

Capital Requirements Directive IV  |  Updates  | 2015 updates |  2014 and 2013 updates

EU prudential rules for banks, building societies and investment firms – Capital Requirements Directive IV (CRD IV)

CRD IV is an EU legislative package covering prudential rules for banks, building societies and investment firms. The EU text was formally published in the Official Journal of the EU on 27 June 2013 (note that the Regulation has also been subject to a subsequent corrigendum). The bulk of the rules contained in the legislation are applicable from 1 January 2014. Please see the Updates section to view the PRA’s latest information on CRD IV, including news updates, letters to firms, consultation papers, policy statements, and supervisory statements.
CRD IV is made up of the:
  • Capital Requirements Directive (2013/36/EU) (CRD) which must be implemented through national law; and
  • Capital Requirements Regulation (575/2013) (CRR), which is directly applicable to firms across the EU. 
CRD IV is intended to implement the Basel III agreement in the EU. This includes enhanced requirements for:
  • the quality and quantity of capital;
  • a basis for new liquidity and leverage requirements;
  • new rules for counterparty risk; and
  • new macroprudential standards including a countercyclical capital buffer and capital buffers for systemically important institutions. 
CRD IV also makes changes to rules on corporate governance, including remuneration, and introduces standardised EU regulatory reporting - referred to as COREP and FINREP. These reporting requirements will specify the information firms must report to supervisors in areas such as own funds, large exposures and financial information.

Reporting requirements

The European Banking Authority (EBA) will specify all reporting data required from firms and National Supervisory Authorities (NSAs) via COREP and FINREP; this will continue to be collected via the Financial Conduct Authority’s (FCA) GABRIEL system. In the UK the sole reporting format for this data will be via XBRL. This will cover all data currently included within the EBA Implementing Technical Standards (ITS). The FCA is responsible for making the required changes to enable GABRIEL to accept XBRL. Links to the EBA website can be found in External Links.