CapBCA

CapBCA refers to the Capital Requirements Directive and Regulation, a set of European Union laws that implement the Basel III international regulatory framework for banks. The directive and regulation aim to strengthen the resilience of the EU banking sector by increasing capital requirements, improving risk management, and enhancing supervision. Key objectives of CapBCA include ensuring banks have sufficient capital to absorb unexpected losses, reducing the likelihood of bank failures, and promoting financial stability. It covers areas such as credit risk, market risk, operational risk, and leverage. The implementation of CapBCA has been a phased process, with different elements coming into effect over time. This regulatory framework is crucial for maintaining the health of the European financial system and its ability to support economic growth.