The Commission is consulting on changes to the Capital Requirements Directive (which would form CRD IV) in seven areas:

  • introducing liquidity standards that include a liquidity coverage ratio requirement underpinned by a longer-term structural liquidity ratio;
  • raising the quality, consistency and transparency of the capital base;
  • introducing a leverage ratio;
  • strengthening capital requirements for counterparty credit risk on certain activities;
  • developing a countercyclical capital framework;
  • introducing appropriate measures to deal with systemically important institutions; and
  • the need for specific prudential requirements for certain areas of business in the context of creating a single rulebook.

The Commission wants comments by 16 April. It has published FAQs along with the detailed consultation, and plans to publish a legislative proposal during the second half of the year.