Capital Requirements Directives
What is the Capital Requirements Directives?
The Capital Requirements Directives (CRD) are a supervisory system, introduced by the financial services industry in the EU, which mirror the Basel 2 and Basel 3 regulations on capital standards and measurements. The Capital Requirements Directives replaced the Capital Adequacy Directive, which was first issued in 1993.
Where have you heard about the Capital Requirements Directives?
The first CRD package was put into place in 2000. There were initially seven banking directives which were then substituted for one banking directive. The aim of this was to improve the purity of the EU Legislation and to create one succinct European Banking Act.
What you need to know about the Capital Requirements Directives.
On the assessment of the Capital Requirements Directives, the World Pensions Council has stated that certain European powers have pushed aggressively for the practice of Basel regulations. In doing so they obliged European banks to rely on the standardised assessment of “credit risk”, thus using the taxpayers’ and public money to build duopolistic practices. They argued that this is similar to promoting exclusive dealing.