The Capital Requirements Directive (“CRD”)1 implements the provisions of the Basel II capital framework2 in the European Union (“EU”).

In an attempt to address some of the perceived root causes of the global financial crisis of the last few years, EU lawmakers have conducted a thorough review of the CRD and a series of amending directives have been proposed. The only amendment adopted so far is Directive 2009/111/EC of 16 September 2009 amending the CRD with regard to banks affiliated to central institutions, certain fund items, large exposures, supervisory arrangements, and crisis management (“CRD2”).3 EU Member States must transpose the changes into their national laws by 31 October 2010 and implement them beginning on 31 December 2010.