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

28 September 2021: Today we published CP19/21 ‘Domestic Liquidity Sub-Groups’, relevant to PRA-authorised UK banks, PRA-designated UK investment firms, and building societies. This consultation closes on Tuesday 12 October 2021.

15 September 2021: We published PS20/21 ‘Financial holding companies: Further implementation’. This PS is relevant to financial holding companies, mixed financial holding companies, PRA-authorised banks, and PRA-designated investment firms (hereafter ‘firms’) that are part of a UK consolidation group, controlled by a UK parent financial holding company, or UK parent mixed financial holding company. The policy presented in this PS comes into force on Wednesday 15 September 2021.

26 July 2021: We published PS19/21 ‘International banks: The Prudential Regulation Authority’s approach to branch authorisation and subsidiary supervision’, relevant to all existing or prospective PRA-authorised banks and designated investment firms that are headquartered outside the UK or are part of a group based outside of the UK. The expectations in SS5/21 take effect, and supersede SS1/18, on Monday 26 July 2021. 

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.

CRD news and publications

Please see The National Archives for historical CRD information.

This page was last updated 28 September 2021

Give your feedback

Was this page useful?
Yes
No
Add your details...