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CAPITAL REQUIREMENTS DIRECTIVE The Capital Requirements Directive (Directive 2006/48/EC and Directive 2006/49/EC) was adopted on 14 June 2006
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The directive will apply
to all credit institutions and investment firms
in EU (more than
8300 banks and 40 cross-border groups)
The Directive is one of the measures required to complete the EU Financial Services Action Plan |
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| The new Basel Accord (Basel ii) will be implemented in the European Union via the Capital Requirements Directive (CRD) | ||||
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The CRD is the common
framework for the implementation of Basel
ii in EU. This directive is making significant changes to two existing
directives that were
implementing Basel I:
1. The Banking
Consolidation Directive
2. The
Capital Adequacy Directive
It is interesting
that the CRD allows for 'national discretions' in a number of areas.
This is the most important strength and weakness of Basel ii.
We have new
standards for risk management...
...
and a much better understanding from the Boards of Directors and
senior management in issues related to risks.
DIRECTIVE 2006/48/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) DIRECTIVE 2006/49/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 14 June 2006 on the capital adequacy of investment firms and credit institutions (recast)  |
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