Introduction to the New Capital Requirements CRRII
The European Commission is currently working on its biggest banking regulatory reform since the financial crash of 2008. The new reform will directly apply to all Banks and Investment Firms within the European Union.
The Capital Requirements Directive (CRD V) is part of a broad package of legislative amendments which includes the Capital Requirements Regulation II (CRR II) and aims to improve the risk and compliance management of the firms. For this, the European Banking Authority (EBA) has been mandated to produce the four Regulatory Technical Standards (RTS) on the Standardized Approach for Counterparty Credit Risk (SA-CCR) of the CRR II.
Within this article, we take the opportunity to answer the three main questions:
a) What are the expected changes?
b) When are the changes expected to take effect?
c) Who is affected by these changes?
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