Capital Adequacy Directive
The Capital Adequacy Directive was a European directive that aimed to establish uniform capital requirements for both banking firms and non-bank securities firms, first issued in 1993 and revised in 1998. These was superseded by the Capital Requirements Directives starting in 2006.
History
The original 93/6/EEC (CAD1) directive was amended by 98/31/EEC (CAD2), to incorporate banks' own estimate of capital using value-at-risk techniques. Annex 1 models were virtually unchanged by CAD2, so there has been no change in the CAD1 regime.
A third revision of the directive 2006/49/EC was issued on 14 June 2006 and would use the new name of Capital Requirements Directive (CRD). This came into force together with recast of a related banking directive on 20 July 2006. The main change was the adoption of Basel II guidelines into the directive.[1]
In 2009, 2010, and 2013, three further revisions were issued known as CRD II, CRD III, and CRD IV. The legislation on this matter current as of 2016[update] is known as the CRD IV package (Capital Requirements Regulation and Directive).
References
- ^ "Capital Requirements Directive: legislation in force". European Commission. Archived from the original on 27 June 2013. Retrieved 3 June 2013.
External links
For further information see the European Commission web site: Free movement of services / Financial Services / Banking / Regulatory Capital
