European Commission Proposal for Banking Regulation - CRD IV
| Date Published |
9/15/2011 |
| Author |
European Commission |
| Theme |
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| Country |
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At the end of July 2011, the European Commission published
its proposals for the European adaptation of Basel III. Contrary to the Basel
III focus on “Internationally Active Banks”, the Commission proposes to extend
the Scope of the CRD IV to all banks and investment firms active in the EU. The
CRD IV consists of both a Capital
Requirements Regulation, which includes harmonized prudential rules for
banks and investment firms throughout the European Union, and a Capital
Requirements Directive, which covers supervision of deposit-taking activities
in areas where the degree of prescription is lower and where links with
national administrative laws are important.This adaptation of Basel III to the European market includes important
provisions for the mortgage industry, i.e., the recognition of covered bonds in
the Liquidity Coverage Ratio, the calibration of the Net Stable Funding Ratio
and Leverage Ratio and the risk weighting of mortgages.
Proposal for a Directive of the European Parliament and the Council
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