CRD Stress Testing

The Advanced IRB Approach (A-IRB) allows institutions to estimate all risk parameters internally — probability of default (PD), loss given default (LGD), exposure at default (EAD) and credit conversion factors (CCF) — using proprietary models. ADVISORI guides you from model development through supervisory approval to ongoing validation — for risk-sensitive capital management under CRR III.

The CRD combined buffer requirement defines how capital conservation buffer, countercyclical buffer, systemic risk buffer and G-SII/O-SII buffers interact under a single framework. ADVISORI advises financial institutions on buffer stacking rules, capital distribution restrictions, MDA calculation and capital conservation planning — ensuring full compliance with the CRD buffer framework.

Capital adequacy requirements under the CRD comprise the overall capital requirement from Pillar 1 minimum, SREP capital add-on (P2R), combined buffer requirement, and Pillar 2 Guidance (P2G). We support banks in supervisory capital quantification, preparation for CRD VI changes, and integration of ESG risks into the capital adequacy assessment.

The Capital Requirements Directive (CRD VI) introduces stricter requirements for governance, fit-and-proper assessments, and ESG risk management. CRD compliance requires end-to-end processes from suitability assessments through internal control systems to ongoing supervisory reporting. ADVISORI supports credit institutions with comprehensive CRD compliance: gap analysis, governance framework design, and regulatory documentation.

The CRD Capital Conservation Buffer under Art. 129 CRD V/VI requires EU credit institutions to hold 2.5% Common Equity Tier 1 (CET1) capital above minimum requirements. When breached, the MDA (Maximum Distributable Amount) calculation triggers automatic distribution restrictions on dividends, bonuses, and AT1 coupons. ADVISORI advises on strategic buffer management, CRD VI implementation, and regulatory capital planning across the EU framework.

The Capital Requirements Directive (CRD) defines comprehensive governance requirements for credit institutions across the EU — from fit-and-proper assessments to management body composition and remuneration policies. CRD VI adds ESG governance obligations and enhanced supervisory board duties. ADVISORI supports you in fully implementing all CRD governance requirements, preparing for suitability assessments, and establishing robust internal governance structures aligned with EBA guidelines.

The countercyclical capital buffer under Art. 130 CRD (Directive 2013/36/EU) requires credit institutions to maintain an institution-specific buffer as the weighted average of applicable national CCyB rates. The calculation under Art. 140 CRD considers the geographic distribution of credit risk exposures. ADVISORI supports you with CRD-compliant buffer calculation, ESRB reciprocity requirements and implementation of CRD VI changes effective January 2026.

The Capital Requirements Directive (CRD VI) imposes comprehensive requirements on credit institutions regarding governance, authorisation, and supervision. We support banks in the strategic implementation of all CRD requirements - from fit & proper assessments and internal governance structures to supervisory interaction. Our RegTech solutions make your CRD compliance efficient and sustainable.

End-to-end consulting for implementing the CRD credit risk framework: from the reformed Standardised Approach (SA-CR) and Output Floor calculations to ECAI due diligence requirements. We support your institution in the compliant implementation of CRR III capital requirements and the strategic optimisation of your risk weighting.

The Capital Requirements Directive (CRD) is the core EU directive governing banking supervision, governance, and authorization of credit institutions. From CRD IV through CRD V to the current CRD VI, it defines the supervisory framework that each EU member state must transpose into national law. ADVISORI has been supporting banks and financial institutions with CRD implementation for over 14 years.

The CRD requires credit institutions to maintain a transparent disclosure process with clear governance. We support banks in establishing three-line quality assurance, drafting the disclosure policy and preparing for the Pillar 3 Data Hub — so your disclosure report withstands supervisory scrutiny.

The European Banking Authority (EBA) operationalises the CRD through binding guidelines on internal governance, remuneration policy, fit-and-proper assessments and ESG risk management. With CRD VI transposition due by January 2026 and the governance guidelines revision (EBA/CP/2025/20), banks face comprehensive adjustments. ADVISORI supports the structured implementation of all EBA requirements — from gap analysis and MaRisk compatibility review to supervisory dialogue.

Fit and Proper ensures that members of the management body, supervisory board and key function holders meet regulatory requirements for knowledge, experience, integrity and time commitment. With CRD VI expanding the scope to key function holders and the revised EBA/ESMA joint guidelines introducing AML/CFT competence requirements, banks face growing complexity in their suitability assessment processes. ADVISORI supports you with systematic implementation of all Fit and Proper requirements across the EU framework.

The CRD defines binding requirements for the internal governance of credit institutions – from the three lines of defence model through internal control systems to the independent compliance function. With the new EBA guidelines (EBA/CP/2025/20) and CRD VI, requirements for risk management governance, control functions, and organizational structures are tightening significantly. ADVISORI supports you with gap analysis, implementation, and ongoing monitoring of your internal governance framework aligned with EBA standards.

Directive 2013/36/EU (CRD IV) together with the CRR forms the regulatory foundation of EU banking supervision under Basel III. We support financial institutions in the full implementation of governance, SREP and Pillar 2 requirements — from gap analysis to supervisory-compliant implementation.

The German implementation of the Capital Requirements Directive IV places specific demands on governance, risk management and BaFin interaction through the KWG and MaRisk framework. We guide banks through full CRD IV compliance in Germany — from gap analysis and SREP preparation to the implementation of compliant remuneration and governance structures.

The use of internal models to calculate risk-weighted assets requires supervisory approval from the ECB and national authorities. We guide your institution through the entire IRB approval process — from model development and validation per the revised ECB guide 2025 to successful regulatory approval. With our expertise, you navigate the tightened CRD VI requirements, the output floor and internal model restrictions with confidence.

The CRD establishes binding liquidity requirements for EU banks — from the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) to internal liquidity risk management. ADVISORI supports financial institutions with regulatory implementation, liquidity governance and building robust stress testing frameworks.

The Liquidity Coverage Ratio (LCR) requires credit institutions to hold sufficient high-quality liquid assets (HQLA) to cover net cash outflows over a 30-day stress scenario. The minimum ratio is 100%. Under the EU implementation of Basel III through CRR/CRD, Delegated Regulation 2015/61 governs HQLA categories, inflow/outflow rates, and reporting requirements. ADVISORI supports banks with compliant LCR calculation, HQLA optimization, and supervisory reporting.

CRD Market Discipline creates transparency and trust between financial institutions and stakeholders through Pillar 3 disclosure requirements. As a leading consulting firm, we develop tailored RegTech solutions for automated disclosure processes, intelligent risk communication and strategic transparency optimisation with full IP protection.