On the 20 June 2013, the Council adopted stricter capital requirements for banks and investment firms, these rules are known as the "CRD IV Package". The new rules were published in the Official Journal on 27 June 2013 and will apply from 1 January 2014.

The new rules are designed to:

  • enshrine in EU law a comprehensive set of international standards known as Basel III;
  • increase financial stability by making banks more resilient in the face of financial shocks;
  • sustain economic growth by introducing harmonised single market rules while also ensuring that credit continues to flow to the real economy.

The CRD IV Package comprises of a regulation establishing prudential requirements that institutions must respect and a directive governing access to deposit-taking activities. The new measures include:

  • a requirement to hold a higher proportion of top quality capital to cover unexpected losses;
  • additional capital requirements in the form of buffers and provisions on liquidity and leverage.