What is it?
Capital Requirements Directive (CRD) IV is the EU's customised implementation of the global Basel III accords on bank capital and liquidity, intended to incorporate the lessons of the financial crisis into bank regulation and supervision. The first draft of CRD IV was published by the European Commission (EC) in July 2011, and Part Six set out the creation of a harmonised EU Liquidity Coverage Ratio (LCR). This would require bank treasuries to hold a buffer of most liquid assets that could be easily sold to repay maturing liabilities in the event of a funding squeeze.
