This note provides an overview of the CRR II Regulation ((EU) 2019/876) and the CRD V Directive ((EU) 2019/878). The Regulation and the Directive amended the Capital Requirements Regulation (575/2013) (CRR) and the CRD IV Directive (2013/36/EU) respectively.

The note considers the reforms introduced by the CRR II Regulation and the CRD V Directive. These include the introduction of Basel III measures into EU law (such as the leverage ratio and the net stable funding ratio (NSFR)), the implementation of the total loss absorbing capacity (TLAC) standard and revisions intended to improve lending to small and medium-sized enterprises (SMEs) and to infrastructure.