CRD
Capital Requirements Directive
Definition
The EU directive implementing the Basel framework for banks and investment firms, covering requirements for authorisation, governance, supervisory review, capital buffers, and remuneration. CRD works alongside the CRR to form the EU's prudential framework. CRD V (the current version) introduced requirements on intermediate EU parent undertakings and enhanced pillar 2 provisions.
Regulatory Context
CRD must be transposed into national law by each member state, allowing some variation in implementation. CRD VI is being implemented as part of the EU's Basel 3.1 package, with key changes to third-country branches and ESG risk management.