The Basel Committee Assesses The EU Implementation Of The Basel Capital Framework

On December 5, 2014, the Basel Committee published a report assessing the European Union's implementation of the Basel capital framework. The EU regulatory capital framework came into force on January 1, 2014 and comprises the Capital Requirements Regulation and the Capital Requirements Directive, together known as "CRD IV". The Basel Committee's assessment of CRD IV is that eight of the fourteen components are compliant, four components (definition of capital and calculation of minimum requirements, the Standardized Approach for credit risk, the securitization framework and the Standardized Measurement Method for market risk) are largely compliant, the Internal Ratings-Based approach for credit risk is materially non-compliant and the counterparty credit risk element is non-compliant.