he Capital Requirements Directive VI (CRD6) is the latest regulatory update in the EU’s prudential framework for banks and investment firms. It builds on Basel III reforms and introduces climate risk disclosure obligations, new capital buffer requirements, and revised credit risk methodologies.
CRD6 is a direct response to evolving financial risks, ensuring institutions are better prepared for systemic crises, climate-related financial risks, and new market stress scenarios. The directive strengthens the European Central Bank’s supervisory role, ensuring a harmonized regulatory environment across EU member states.