Capital Requirements Directive (CRD) IV

2017 ◽  
pp. 242-259 ◽  
Keyword(s):  
European Union ◽  
Financial Stability ◽  
Capital Requirements ◽  
Capital Requirement ◽  
The European Union ◽  
Crd Iv

Capital requirement directives – as well as their significance in matters relating to implementation – in the European Union in particular, as well as other parts of the globe, are considered under this chapter. The chapter also aims to accentuate the importance of such directives in matters relating to global and financial stability.

scholarly journals Basel IV implementation: a review of the case of the European Union

2020 ◽  
Vol 4 (1) ◽  
pp. 7-24
Author(s):  
Mete Feridun ◽  
Alper Özün
Keyword(s):  
European Union ◽  
Financial Stability ◽  
Banking Sector ◽  
Capital Requirements ◽  
Policy Implications ◽  
The European Union ◽  
Content Type ◽  
Secondary Sources ◽  
Global Banking ◽  
Risk Framework

PurposeIntroducing radical changes to the methodologies for the determination of capital requirements, the final stage of the Basel III standards, which is referred to as “Basel IV” by the industry, will be a significant challenge for the global banking sector. This article reviews the main components of the new framework, analyses its ongoing implementation in the European Union and discusses its potential impact on banks, putting forward policy recommendations.Design/methodology/approachThis article uses primary sources such as the publications by the Basel Committee for Banking Supervision and the European Commission. It also reviews the secondary sources, including both academic articles and analyses by various stakeholders. However, this article does not undertake any empirical analysis.FindingsThis article discusses that Basel IV will introduce strategic, operational and regulatory challenges for banks in scope. It also identifies a number of areas which are subject to further debate in the European Union such as the enhanced due diligence requirements under the new credit risk framework; governance, reporting and control rules under the operational risk framework; exemptions for certain derivative transactions under the credit valuation adjustment framework and the level of application of the capital floors within banking groups. This article concludes that the global implementation of the reforms by all jurisdictions and transposition into national banking laws concurrently with the European Union in line with the Basel Committee's implementation timeline is important from a financial stability standpoint.Originality/valueThe article presents an up-to-date and comprehensive review of the practical implications of Basel IV standards. It analyses the implementation of the standards in the case of the European Union, reviews the potential policy implications and presents recommendations for risk management practitioners.

The New Actors of Macroprudential Supervision in Germany and Europe – A Critical Evaluation

2015 ◽  
Vol 27 (6) ◽  
Author(s):  
Elke Gurlit ◽  
Isabel Schnabel
Keyword(s):  
European Union ◽  
Critical Evaluation ◽  
Financial System ◽  
Institutional Setting ◽  
The European Union ◽  
Economic Perspective ◽  
Systemic Risks ◽  
Multi Level ◽  
Crd Iv

AbstractWith the CRR/CRD IV package being in effect, the banking supervisors of the European Union possess an impressive set of macroprudential instruments to fight systemic risks in the financial system. However, in order to be effective and efficient, the instruments need an appropriate organizational and institutional setting. The text analyzes the complex multi-level network of actors of macroprudential supervision from a legal and economic perspective.

scholarly journals Financial and Banking Regulation and Supervision within the EU

2013 ◽  
Vol 3 (2) ◽  
pp. 17-37
Author(s):  
Constanze Lehleiter
Keyword(s):  
Financial Stability ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Banking Regulation ◽  
Capital Requirements ◽  
Green Paper ◽  
Shadow Banking ◽  
The European Union ◽  
European Banking ◽  
The Eu

AbstractThe European Union (EU) has faced not only the international financial crisis, but also the European banking and the sovereign debt crisis. A lack of efficient regulations and supervision were a serious cause of recent developments. As a reaction, the EU finally implemented a framework covering both micro- and macro-prudential policies. Measures such as the new capital requirements, the deposit guarantee schemes, the green paper on shadow banking and, most importantly, the new approach for a macro-prudential supervision are headed towards crisis prevention. However, the challenge is to define regulations enhancing financial stability, which, at the same time, do not prevent institutions from generating reasonable financial risks and do not reduce growth. In that regard, the presented measures still have deficits which have to be faced. Furthermore, coordination between various authorities and the European Commission remains another challenge.

scholarly journals Italy

2020 ◽  
Vol 20 (237) ◽  
Author(s):  
Keyword(s):  
Central Bank ◽  
Financial Stability ◽  
Local Level ◽  
Competent Authority ◽  
Capital Requirements ◽  
Shared Responsibility ◽  
European Central ◽  
Leading Role ◽  
Crd Iv

Macroprudential oversight in Italy combines local elements with the European framework. At a local level, financial stability is a shared responsibility between Banca d’Italia (BdI), which is the national central bank and the prudential authority for banks and other financial institutions, the markets authority, Commissione Nazionale per le Società e la Borsa (CONSOB), the insurance supervisor, Istituto per la Vigilanza Sulle Assicurazioni (IVASS), and the pension funds supervisor, Commissione di Vigilanza sui Fondi Pensione (COVIP).2 Each authority exercises its responsibility within a combination of sectoral and activity boundaries and the BdI plays a leading role in surveillance and coordination. Within the European framework, the BdI is both the national competent authority and the designated authority for the macroprudential tools considered under the Capital Requirements Regulation (CRR) and the Capital Requirements Directive IV (CRD IV), which are implemented and activated following the processes described in these regulatory texts and the guidelines provided by the European Central Bank (ECB) – within the competences assigned to it by the SSM Regulation - and the European Systemic Risk Board (ESRB). The ubiquitous role of the BdI on both fronts eases the challenges posed by the coexistence of these two frameworks.

EU Bank Regulation after the Great Financial Crisis

2021 ◽  
pp. 163-182
Author(s):  
Agnieszka Smoleńska
Keyword(s):  
European Union ◽  
Financial Crisis ◽  
Financial Stability ◽  
Banking Sector ◽  
Regulatory Regime ◽  
The European Union ◽  
Financial Repression ◽  
Cross Border ◽  
Crisis Prevention ◽  
New Framework

The chapter outlines the main features of the post-crisis regulatory regime for banks in the European Union. It traces the evolution of the approach taken by EU legislators which transformed the deregulation which prevailed prior to the Great Financial Crisis (GFC) into a regulatory regime which though far from financial repression known in the 1970s, is oriented towards functionally prioritizing financial stability and banks’ functions in the broader economy. This is achieved through co-responsibilization of the banking sector for public objectives, explicit regulation of structure and operations as well as far-reaching powers granted to new oversight authorities. The chapter explains the features of such a new bespoke regulatory regime for EU cross-border banking drawing on the new framework for bank crisis prevention and management, that is EU resolution law.

scholarly journals Comparative Analysis of Financial Stability Policy of The National Bank of Serbia and The European Central Bank

2015 ◽  
Vol 53 (2) ◽  
pp. 142-161
Author(s):  
Mirjana Jemović ◽  
Borko Krstić
Keyword(s):  
European Union ◽  
Financial Services ◽  
Financial Stability ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
System Stability ◽  
The European Union ◽  
National Bank ◽  
The Global Financial Crisis ◽  
The Eu

AbstractThe Republic of Serbia has successfully completed the first part in the European Union integration process, being granted candidate status for membership in the European Union (EU). The stage of accession negotiations is in progress, and it includes the full harmonization with the EU acquis, whereby the analytical review of legislation, the so-called screening is being carried out in 35 chapters. The global financial crisis that affected our country in 2008 has required a timely reaction of the National Bank of Serbia (NBS) in order to preserve the financial system stability, especially the banking sector as its most important segment. As the financial services sector adjusts within chapter 9, the aim of this paper is to assess the level of compliance of national legislation with the EU legislation regarding banking sector. Along with the regulatory initiatives in the field of preserving financial stability in the EU countries, the NBS has paid great attention to the harmonization of its financial stability policy with the financial stability policy of the European System of Central Banks (ESCB).

scholarly journals The International Dimension of EMU: The Interplay Between the Global Financial Stability Architecture and the European Union

2020 ◽  
Author(s):  
Shawn Donnelly ◽  
Ramses Wessel
Keyword(s):  
European Union ◽  
Financial Institutions ◽  
Financial Stability ◽  
Service Providers ◽  
European Court Of Justice ◽  
External Influence ◽  
The European Union ◽  
Primary Method ◽  
European Court ◽  
The Eu

It is a truism that the European Union’s self-proclaimed autonomy may be a helpful concept in legal terms–primary to preserve the monopoly of the European Court of Justice to interpret European Union (EU) law–but it is equally clear that the EU is to a large extent influenced by the decisions and policies of other international institutions. The present chapter aims to assess this external influence in relation to a specific, but core dimension of the EU, the Economic and Monetary Union (EMU). More specifically, we will assess the influence of what these days is known as the Global Financial Stability Architecture (GFSA), on the EMU. As will be further explained below, the GFSA is a network of the key global financial institutions that collect data, conduct research, provide insight and propose rules of conduct for the financial sector. Its mission is to rethink (global) macroeconomic policy to make economies more resilient–how to steer the economy clear of risks that could lead it to collapse; how to deal with real-time crises; and how to initiate recovery. Its primary method is to find out how differing components of financial markets act and react to one another, and to propose prudential regulation that shapes the behaviour of private financial service providers, of governments and of central banks.

Sign in / Sign up

Export Citation Format

Share Document