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.