The 2013 Capital Requirements Directive IV and Capital Requirements Regulation: implications and institutional effects

Moloney, Niamh (2016) The 2013 Capital Requirements Directive IV and Capital Requirements Regulation: implications and institutional effects. Zeitschrift für öffentliches Recht . ISSN 0948-4396 (In Press)

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Abstract

Abstract This survey article considers the background to and major features of the behemoth 2013 CRD IV/CRR regime which governs the prudential regulation and supervision of banks and investment firms in the EU. The CRD IV/CRR regime is in its infancy. Initial empirical assessments suggest, however, that while it is likely to strengthen bank stability, it may also contribute to a contraction in the funding capacity of the EU financial system. While the ultimate effects of CRD IV/CRR are unclear, it can reasonably be speculated that unintended and potentially prejudicial effects may arise. This article suggests that the extent to which CRD IV/CRR can be applied flexibly, amplified and corrected reasonably easily, and supervised in a manner which supports consistency of application across the EU as well as an appropriate level of national supervisory discretion, will therefore have a significant influence on the ability of the EU to mitigate the risk of these effects arising. After reviewing the background to and major features of CRD IV/CRR, the article considers the extent to which the harmonization model deployed under CRD IV/CRR, the EU’s regulatory capacity to amplify and correct CRD IV/CRR, and the supervisory governance arrangements which support CRD IV/CRR are likely to mitigate the risks of unintended and prejudicial effects.

Item Type:	Article
Official URL:	http://link.springer.com/journal/708
Additional Information:	© 2016 Verlag Österreich
Library of Congress subject classification:	K Law > K Law (General)
Sets:	Departments > Law
Date Deposited:	15 Aug 2016 14:01
URL:	http://eprints.lse.ac.uk/67481/

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