Finance:Capital Adequacy Directive

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Directive 93/6/EEC
European Union directive
Titleon the capital adequacy of investments firms and credit institutions
Made byCouncil of the European Communities
Made underfirst and third sentences of Article 57 (2) of TEEC
Journal referenceOJ L 141, 11 June 1993, p. 1–26
Date made15 March 1993
Implementation date1 July 1995
Applies from31 December 1995
Other legislation
Amended byDirective 98/33/EC, Directive 2002/87/EC, Directive 2004/39/EC and Directive 2005/1/EC
Replaced byDirective 2006/49/EC

The Capital Adequacy Directive was a European directive that aimed to establish uniform capital requirements for both banking firms and non-bank securities firms, first issued in 1993 and revised in 1998. These was superseded by the Capital Requirements Directives starting in 2006.


The original 93/6/EEC (CAD1) directive was amended by 98/31/EEC (CAD2), to incorporate banks' own estimate of capital using value-at-risk techniques. Annex 1 models were virtually unchanged by CAD2, so there has been no change in the CAD1 regime.

A third revision of the directive 2006/49/EC was issued on 14 June 2006 and would use the new name of Capital Requirements Directive (CRD) . This came into force together with recast of a related banking directive on 20 July 2006. The main change was the adoption of Basel II guidelines into the directive.[1]

In 2009, 2010 and 2013, three further revisions were issued known as CRD II, CRD III and CRD IV. The legislation on this matter current as of 2016 is known as the CRD IV package (Capital Requirements Regulation and Directive).


External links

For further information see the European Commission web site: Free movement of services / Financial Services / Banking / Regulatory Capital