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Directive 2013/36/EU - Capital Requirements Directive CRD IVRecitalsTitle I Subject matter, scope and definitions (arts. 1-3)Article 1 Subject matterArticle 2 ScopeArticle 3 DefinitionsTitle II Competent authorities (arts. 4-7)Article 4 Designation and powers of the competent authoritiesArticle 4a Supervisory independence of competent authoritiesArticle 5 Coordination within Member StatesArticle 6 Cooperation within the European System of Financial SupervisionArticle 7 Union dimension of supervisionTitle III Requirements for access to the activity of credit institutions (arts. 8-27l)Chapter 1 General requirements for access to the activity of credit institutions (arts. 8-21c)Article 8 AuthorisationArticle 8a Specific requirements for authorisation of credit institutions referred to in point (1)(b) of Article 4(1) of Regulation (EU) No 575/2013Article 9 Prohibition against persons or undertakings other than credit institutions from carrying out the business of taking deposits or other repayable funds from the publicArticle 10 Programme of operations, structural organisation and governance arrangementsArticle 11 Economic needsArticle 12 Initial capitalArticle 13 Effective direction of the business and place of the head officeArticle 14 Shareholders and membersArticle 15 Refusal of authorisationArticle 16 Prior consultation of the competent authorities of other Member StatesArticle 17 Branches of credit institutions authorised in another Member StateArticle 18 Withdrawal of authorisationArticle 19 Name of credit institutionsArticle 20 Notification of authorisation and withdrawal of authorisationArticle 21 Waiver for credit institutions permanently affiliated to a central bodyArticle 21a Approval of financial holding companies and mixed financial holding companiesArticle 21b Intermediate EU parent undertakingArticle 21c Requirement to establish a branch for the provision of banking services by third-country undertakingsChapter 2 Qualifying holding in a credit institution (arts. 22-27)Article 22 Notification and assessment of proposed acquisitionsArticle 23 Assessment criteriaArticle 24 Cooperation between competent authoritiesArticle 25 Notification in the case of a divestitureArticle 26 Information obligations and penaltiesArticle 27 Criteria for qualifying holdingsChapter 3 Acquisition or divestiture of a material holding (arts. 27a-27e)Article 27a Notification and assessment of the acquisitionArticle 27b Assessment criteriaArticle 27c Cooperation between competent authoritiesArticle 27d Notification of divestitureArticle 27e Information obligations and penaltiesChapter 4 Material transfers of assets and liabilities (arts. 27f-27g)Article 27f Notification of material transfers of assets and liabilitiesArticle 27g Information obligations and penaltiesChapter 5 Mergers and divisions (arts. 27h-27l)Article 27h Scope and definitionsArticle 27i Notification and assessment of the merger or divisionArticle 27j Assessment criteriaArticle 27k Cooperation between competent authoritiesArticle 27l Information obligations and penaltiesTitle IV Initial capital of investment firms (arts. 28-32)Article 28 Initial capital of investment firmsArticle 29 Initial capital of particular types of investment firmsArticle 30 Initial capital of local firmsArticle 31 Coverage for firms not authorised to hold client money or securitiesArticle 32 Grandfathering provisionTitle V Provisions concerning the freedom of establishment and the freedom to provide services (arts. 33-46)Chapter 1 General Principles (arts. 33-34)Article 33 Credit institutionsArticle 34 Financial institutionsChapter 2 The right of establishment of credit institutions (arts. 35-38)Article 35 Notification requirement and interaction between competent authoritiesArticle 36 Commencement of activitiesArticle 37 Information about refusalsArticle 38 Aggregation of branchesChapter 3 Exercise of the freedom to provide services (art. 39)Article 39 Notification procedureChapter 4 Powers of the competent authorities of the host Member State (arts. 40-46)Article 40 Reporting requirementsArticle 41 Measures taken by the competent authorities of the home Member State in relation to activities carried out in the host Member StateArticle 42 Reasons and communicationArticle 43 Precautionary measuresArticle 44 Powers of host Member StatesArticle 45 Measures following withdrawal of authorisationArticle 46 AdvertisingTitle VI Prudential supervision of third-country branches and relations with third countries (arts. 47-48r)Chapter 1 Prudential supervision of third-country branches (arts. 47-48q)Section I General provisions (arts. 47-48b)Article 47 Scope and definitionsArticle 48 Prohibition of discriminationArticle 48a Classification of third-country branchesArticle 48b Conditions for qualifying third-country branchesSection II Authorisation and regulatory requirements (arts. 48c-48l)Sub-Section 1 Authorisation requirements (arts. 48c-48d)Article 48c Minimum conditions for the authorisation of third-country branchesArticle 48d Conditions for the refusal or withdrawal of a third-country branch's authorisationSub-Section 2 Minimum regulatory requirements (arts. 48e-48h)Article 48e Capital endowment requirementArticle 48f Liquidity requirementsArticle 48g Internal governance and risk managementArticle 48h Booking requirementsSub-Section 3 Power to require authorisation under Title III and requirements on third-country branches which have systemic importance (arts. 48i-48j)Article 48i Power to require the establishment of a subsidiaryArticle 48j Assessment of systemic importance and requirements on third-country branches which have systemic importanceSub-Section 4 Reporting requirements (arts. 48k-48l)Article 48k Regulatory and financial information on third-country branches and on the head undertakingArticle 48l Standard forms and templates and frequency of reportingSection III Supervision (arts. 48m-48q)Article 48m Supervision of third-country branches and supervisory examination programmeArticle 48n Supervisory review and evaluation processArticle 48o Supervisory measures and powersArticle 48p Cooperation between competent authorities and colleges of supervisorsArticle 48q Notification to EBAChapter 2 Relations with third countries (art. 48r)Article 48r Cooperation with supervisory authorities of third countries regarding supervision on a consolidated basisTitle VII Prudential Supervision (arts. 49-142)Chapter 1 Principles of prudential supervision (arts. 49-72)Section I Competence and duties of home and host Member States (arts. 49-52)Article 49 Competence of the competent authorities of the home and host Member StatesArticle 50 Collaboration concerning supervisionArticle 51 Significant branchesArticle 52 On-the-spot checking and inspection of branches established in another Member StateSection II Exchange of information and professional secrecy (arts. 53-62)Article 53 Professional secrecyArticle 54 Use of confidential informationArticle 54aArticle 55 Cooperation agreementsArticle 56 Exchange of information between authoritiesArticle 57 Exchange of information with oversight bodiesArticle 58 Transmission of information concerning monetary, deposit protection, systemic and payment aspectsArticle 58a Transmission of information to international bodiesArticle 59 Transmission of information to other entitiesArticle 60 Disclosure of information obtained by on-the-spot checks and inspectionsArticle 61 Disclosure of information concerning clearing and settlement servicesArticle 62 Processing of personal dataSection III Duty of persons responsible for the legal control of annual and consolidated accounts (art. 63)Article 63 Duty of persons responsible for the legal control of annual and consolidated accountsSection IV Supervisory powers, powers to impose penalties and right of appeal (arts. 64-72)Article 64 Supervisory powers and powers to impose penaltiesArticle 65 Administrative penalties, periodic penalty payments and other administrative measuresArticle 66 Administrative penalties, periodic penalty payments and other administrative measures for breaches of authorisation requirements and requirements for acquisitions or divestiture of material holdings, material transfers of assets and liabilities, mergers or divisionsArticle 67 Other provisionsArticle 68 Publication of administrative penaltiesArticle 69 Exchange of information on penalties and maintenance of a central database by EBAArticle 70 Effective application of administrative penalties and other administrative measures, and exercise of powers to impose penalties by competent authoritiesArticle 71 Reporting of breachesArticle 72 Right of appealChapter 2 Review Processes (arts. 73-110)Section I Internal capital adequacy assessment process (art. 73)Article 73 Internal CapitalSection II Arrangements, processes and mechanisms of institutions (arts. 74-96)Sub-Section 1 General principles (arts. 74-75)Article 74 Internal governance and recovery and resolution plansArticle 75 Oversight of remuneration policiesSub-Section 2 Technical criteria concerning the organisation and treatment of risks (arts. 76-87a)Article 76 Treatment of risksArticle 77 Internal Approaches for calculating own funds requirementsArticle 78 Supervisory benchmarking of approaches for calculating own funds requirementsArticle 79 Credit and counterparty riskArticle 80 Residual riskArticle 81 Concentration riskArticle 82 Securitisation riskArticle 83 Market riskArticle 84 Interest risk arising from non-trading book activitiesArticle 85 Operational riskArticle 86 Liquidity riskArticle 87 Risk of excessive leverageArticle 87a Environmental, social and governance risksSub-Section 3 Governance (arts. 88-96)Article 88 Governance arrangementsArticle 89 Country-by-country reportingArticle 90 Public disclosure of return on assetsArticle 91 Management body and suitability assessmentArticle 91a Key function holders and suitability assessmentArticle 92 Remuneration policiesArticle 93 Institutions that benefit from government interventionArticle 94 Variable elements of remunerationArticle 95 Remuneration CommitteeArticle 96 Maintenance of a website on corporate governance and remunerationSection III Supervisory review and evaluation process (arts. 97-101)Article 97 Supervisory review and evaluationArticle 98 Technical criteria for the supervisory review and evaluationArticle 99 Supervisory examination programmeArticle 100 Supervisory stress testingArticle 101 Ongoing review of the permission to use internal approachesSection IV Supervisory measures and powers (arts. 102-107)Article 102 Supervisory measuresArticle 103 Application of supervisory measures to institutions with similar risk profilesArticle 104 Supervisory powersArticle 104a Additional own funds requirementArticle 104b Guidance on additional own fundsArticle 104c Cooperation with resolution authoritiesArticle 105 Specific liquidity requirementsArticle 106 Specific publication requirementsArticle 107 Consistency of supervisory reviews, evaluations and supervisory measuresSection V Level of application (arts. 108-110)Article 108 Internal capital adequacy assessment processArticle 109 Institutions' arrangements, processes and mechanismsArticle 110 Review and evaluation and supervisory measuresChapter 3 Supervision on a consolidated basis (art. 110a-127)Section I Application of this Chapter to investment firm groups (art. 110a)Article 110a Scope of application to investment firm groupsSection I Principles for conducting supervision on a consolidated basis (arts. 111-118)Article 111 Determination of the consolidating supervisorArticle 112 Coordination of supervisory activities by the consolidating supervisorArticle 113 Joint decisions on institution-specific prudential requirementsArticle 114 Information requirements in emergency situationsArticle 115 Coordination and cooperation arrangementsArticle 116 Colleges of supervisorsArticle 116a Accessibility of information on the European single access pointArticle 117 Cooperation obligationsArticle 118 Checking information concerning entities in other Member StatesSection II Financial holding companies, mixed financial holding companies and mixed-activity holding companies (arts. 119-127)Article 119 Inclusion of holding companies in consolidated supervisionArticle 120 Supervision of mixed financial holding companiesArticle 121 Qualification of members of the management bodyArticle 122 Requests for information and inspectionsArticle 123 SupervisionArticle 124 Exchange of informationArticle 125 CooperationArticle 126 PenaltiesArticle 127 Assessment of equivalence of third countries' consolidated supervisionChapter 4 Capital Buffers (arts. 128-142)Section I Buffers (arts. 128-134)Article 128 DefinitionsArticle 129 Requirement to maintain a capital conservation bufferArticle 130 Requirement to maintain an institution-specific countercyclical capital bufferArticle 131 Global and other systemically important institutionsArticle 132 ReportingArticle 133 Requirement to maintain a systemic risk bufferArticle 134 Recognition of a systemic risk buffer rateSection II Setting and calculating countercyclical capital buffers (arts. 135-140)Article 135 ESRB guidance on setting countercyclical buffer ratesArticle 136 Setting countercyclical buffer ratesArticle 137 Recognition of countercyclical buffer rates in excess of 2,5 %Article 138 ESRB recommendation on third country countercyclical buffer ratesArticle 139 Decision by designated authorities on third country countercyclical buffer ratesArticle 140 Calculation of institution-specific countercyclical capital buffer ratesSection III Capital conservation measures (arts. 141-142)Article 141 Restrictions on distributionsArticle 141a Failure to meet the combined buffer requirementArticle 141b Restriction on distributions in case of failure to meet the leverage ratio buffer requirementArticle 141c Failure to meet the leverage ratio buffer requirementArticle 142 Capital Conservation PlanTitle VIII Disclosure by competent authorities (arts. 143-144)Article 143 General disclosure requirementsArticle 144 Specific disclosure requirementsTitle IX Delegated and implementing acts (arts. 145-149)Article 145 Delegated ActsArticle 146 Implementing actsArticle 147 European Banking CommitteeArticle 148 Exercise of the delegationArticle 149 Objections to regulatory technical standardsTitle X Amendments of Directive 2002/87/EC (art. 150)Article 150 Amendments of Directive 2002/87/ECTitle XI Transitional and final provisions (arts. 151-165)Chapter 1 Transitional provisions on the supervision of institutions exercising the freedom of establishment and the freedom to provide services (arts. 151-159)Article 151 ScopeArticle 152 Reporting requirementsArticle 153 Measures taken by the competent authorities of the home Member State in relation to activities carried out in the host Member StateArticle 154 Precautionary measuresArticle 155 ResponsibilityArticle 156 Liquidity supervisionArticle 157 Collaboration concerning supervisionArticle 158 Significant branchesArticle 159 On-the-spot checksChapter 1A Transitional provisions on financial holding companies and mixed financial holding companies (art. 159a)Article 159a Transitional provisions on approval of financial holding companies and mixed financial holding companiesChapter 2 Transitional provisions for capital buffers (art. 160)Article 160 Transitional provisions for capital buffersChapter 3 Final provisions (arts. 161-165)Article 161 Review and reportArticle 162 TranspositionArticle 163 RepealArticle 164 Entry into forceArticle 165 AddresseesAnnex I List of activities subject to mutual recognitionAnnex II Correlation tableDone at
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AI Summary of Article 85 Operational risk

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Version status: Amended | Document consolidation status: Updated to reflect all known changes
Version date: 9 July 2024 - onwards
Version 5 of 5

Article 85 Operational risk

1.Competent authorities shall ensure that institutions implement policies and processes to evaluate and manage exposures to operational risk, including risks arising from outsourcing arrangements and direct and indirect crypto-asset exposures and exposures to crypto-asset service providers, and to cover low-frequency high-severity events. Institutions shall articulate what constitutes operational risk for the purposes of those policies and procedures.

2. Competent authorities shall ensure that institutions have adequate contingency and business continuity policies and plans, including ICT business continuity policies and plans and ICT response and recovery plans for the technology they use for the communication of information, and that those plans are established, managed and tested in accordance with Article 11 of Regulation (EU) 2022/2554, in order to allow institutions to keep operating in the event of severe business disruption and limit losses incurred as a consequence of such disruption.

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