Basel III is being implemented in the European Union from January 2014 through the Capital Requirements Directive IV (CRD IV) and the Capital Requirements Regulation (CRR). The aim of these regulations is to improve the resiliency of the banking sector by requiring more and higher quality capital and more balanced liquidity. The key elements of CRD IV/CRR are:

  • Higher quality capital base
  • Higher minimum capital requirements
  • Additional requirements for calculating risk-weighted assets (RWAs)
  • Leverage ratio
  • Liquidity standards

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Further reading