EU Publishes Capital Requirements Directive V in the Official Journal
EU published the finalized fifth Capital Requirements Directive CRD V (EU Directive 2019/878) in the Official Journal of the European Union. Directive 2019/878 of the European Parliament and of the Council amends the fourth Capital Requirements Directive, or CRD IV (Directive 2013/36/EU). The amendments to CRD IV relate to exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers, and capital conservation measures. CRD V shall enter into force on the twentieth day following that of their publication in the Official Journal of the European Union. Directive 2019/878 specifies that the members states shall adopt and publish the measures necessary to comply with CRD V by December 28, 2019, with certain exceptions, as specified in the Article 3 (titled "Transposition") of CRD V.
CRD V aims to address issues raised in relation to the provisions of CRD IV that proved not to be sufficiently clear and have, therefore, been subject to divergent interpretations or that have been found to be overly burdensome for certain institutions. It also contains adjustments to CRD IV that are necessary following either the adoption of other relevant Union legal acts or the changes proposed in parallel to the Capital Requirements Regulation (CRR). Finally, the amendments better align the current regulatory framework to international developments to promote consistency and comparability among jurisdictions.
The member states shall adopt and publish, by December 28, 2020, the measures necessary to comply with this Directive and shall immediately inform the Commission thereof. They shall apply those measures from December 29, 2020. However, the provisions necessary to comply with the amendments set out in point (21) and points (29)(a), (b), and (c) of Article 1 of CRD V as regards Article 84 and Article 98(5) and (5a) of CRD IV shall apply from June 28, 2021 and the provisions necessary to comply with the amendments set out in points (52) and (53) of Article 1 of CRD V as regards Articles 141b, 141c, and 142(1) of CRD IV shall apply from January 01, 2022.
Related Links
Effective Date: June 27, 2019
Keywords: Europe, EU, Banking, CRD IV, CRD V, Systemic Risk, CRR2, Regulatory Capital, Basel III, European Council, European Parliament
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
EU Publishes BRRD II and SRMR II in the Official JournalRelated Articles
EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
FSB Sets Out Work Priorities for 2021
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU Publishes Corrigendum to Revised Capital Requirements Regulation
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs Issue Statement on Application of Sustainability Disclosures Rule
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC Consults on Crisis Management and Deposit Insurance Frameworks
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA Proposes Standards for Supervisory Cooperation Under IFD
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE Addresses Banks in Scope of First Resolvability Assessment
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.