Capital Requirements Directive

The Capital Requirements Directive covers prudential rules for banks, building societies and investment firms.

This page explains our implementation of these rules and also provides updates on our prudential policies for banks, building societies and designated investment firms.

Background

In May 2019, the European Union (EU) published legislation to implement, within the EU, some of the remaining Basel III prudential reforms agreed by the Basel Committee on Banking Supervision (BCBS). This legislation, known as CRD V (Directive (EU) 2019/878) and Capital Requirements Regulation (CRR) II (Regulation (EU) 2019/876), amended CRD IV (Directive (EU) 2013/36) and CRR (Regulation (EU) 575/2013) respectively.

We implemented elements of CRD V and the final policy was published in PS29/20 ‘Capital Requirements Directive V (CRD V)'.

Latest CRD updates

21 July 2021: We published PS18/21 ‘Remuneration: Correction to the definition of ‘higher paid material risk taker’, relevant to PRA-authorised banks, building societies, and PRA-designated investment firms. All changes outlined in this PS will take effect from Friday 23 July 2021.

9 July 2021: We published PS17/21 ‘Implementation of Basel standards’. This PS is relevant to UK banks, building societies, and PRA-designated investment firms (collectively ‘firms’), as well as UK financial holding companies (FHCs) and UK mixed financial holding companies (MFHCs) of certain PRA-authorised firms. The policy material being updated in this PS is published as near-final.

6 July 2021: We published PS16/21 ‘Internal Rating Based UK mortgage risk weights: Managing deficiencies in model risk capture’, relevant to PRA-authorised UK banks, building societies, and ring-fenced banks (RFBs) holding IRB model permissions. The amendments to SS11/13 will take effect from Saturday 1 January 2022, and the revised PD and LGD parameter minimum values will be consulted on as part of the PRA’s implementation of the Basel 3.1 standards. 

5 July 2021: We published CP15/21 ‘Designating investment firms’, relevant to all PRA-designated UK investment firms. This consultation closes on Tuesday 5 October 2021.

21 June 2021: We published CP12/21 ‘Financial holding companies: Further implementation’, relevant to financial holding companies, mixed financial holding companies, and banks and PRA-designated investment firms (firms) that are part of a UK consolidation group controlled by a UK parent financial holding company or UK parent mixed financial holding company. This consultation closes on Thursday 22 July 2021.

3 June 2021: We published CP10/21 ‘Implementation of Basel standards: Non-performing loan securitisations’, relevant to all PRA-authorised firms to which the Capital Requirements Directive (CRD) applies. This consultation closes on Monday 26 July 2021.

CRD news and publications

Please see The National Archives for historical CRD information.

This page was last updated 21 July 2021

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