Europe: banks - capital requirements and corporate governance

The European Commission yesterday published proposals for a Directive and Regulation intended to replace the current Capital Requirements Directives (2006/48 and 2006/49). The proposals - widely known as CRD IV - are intended to implement Basel III but also contain additional provisions concerning bank governance. These governance provisions are found in articles 86 to 91 of the proposed Directive and cover a wide range of matters including the attributes, knowledge and skills of the board, board diversity, directors' time commitment, remuneration policies and the role of the remuneration committee. Much of what the Directive provides in respect of these matters will be the subject of further guidance in the form of regulatory technical standards produced by the European Banking Authority.

For further information see: Commission press release | FAQs | Citizens' summary (pdf) | Directive proposal (pdf) | Directive impact assessment: full text (pdf) or summary (pdf) | Regulation proposal: part 1 (pdf), part 2 (pdf) and part 3 (pdf) | Regulation impact assessment: full text (pdf) or summary (pdf) |.