CRD IV

CRD IV is a Euro­pean Union legis­la­tive package consis­ting of the Capi­tal Requi­re­ments Direc­tive (2013/36/EU) and the Capi­tal Requi­re­ments Regu­la­tion (575/2013), which sets out rules for banks, buil­ding socie­ties and invest­ment firms to hold suffi­ci­ent finan­cial resour­ces to cover the risks asso­cia­ted with their busi­ness and to meet their liabi­li­ties as they fall due. CRD IV streng­thens the exis­ting frame­work in response to finan­cial stabi­lity concerns that arose during the recent finan­cial crisis.