CRD IV: the European response to Basel III and the impact on tier 1 and tier 2 bank capital

On 20 July 2011, the European Commission published its much anticipated "CRD IV" proposals to implement in Europe the international standards on bank capital recommended by the Basel Committee on Banking Supervision, commonly known as Basel III. The CRD IV proposals comprise a draft regulation and a draft directive. This client note analyses some of the CRD IV proposals relating to the nature of bank capital instruments, certain differences between CRD IV and Basel III and the potential impact of the CRD IV proposals on tier 1 and tier 2 issuance structures and the new generation of loss absorbing regulatory capital instruments.

Read the full report on the European response to Basel III and the impact on tier 1 and tier 2 bank capital.

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