Western Europe: Capital Requirements Directive - Spreading The Word - Fifteen Months After The Basel II Framework Was Published, The European Commission Has Turned It Into A New Law - The Capital Requirements Directive. Michael Imeson Reports On The Trans.

Banker, The, November, 2005

The long-awaited Capital Requirements Directive (CRD), which transposes the Basel II capital accord into EU law for all credit institutions and investment firms, has finally been ratified. The European Parliament voted to approve it on September 28, and on October 11 it was rubber-stamped by the Council of Ministers.

The next challenge is for member states to transpose the directive into their national laws in time to meet Basel II's global deadlines. The first deadline is January 1, 2007, or, for institutions taking the more sophisticated approaches to risk measurement and capital allocation, January 1, 2008.

The directive, which was drawn up by the Banking and Financial Conglomerates division of the European Commission's Internal Market and Services...

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