According to article 1, the Capital Requirements Regulation lays down uniform rules concerning general prudential requirements that institutions, financial holding companies and mixed financial holding companies supervised under Directive 2013/36/EU shall comply with in relation to the following items:
(a) own funds requirements relating to entirely quantifiable, uniform and standardised elements of credit risk, market risk, operational risk, settlement risk and leverage;
(b) requirements limiting large exposures;
(c) liquidity requirements relating to entirely quantifiable, uniform and standardised elements of liquidity risk;
(d) reporting requirements related to points (a), (b) and (c);
(e) public disclosure requirements.
In 2022, amendments brought a series of climate-related aspects in article 501a. However, those were scrapped later. Under the version in force in 2025, the regulation brings Prudential treatment of exposures to environmental or social in article 501c, such as the feasibility of introducing a standardised methodology to identify and qualify the exposures using the information on transition risk and physical risk indicators made available by sustainability disclosure reporting frameworks adopted in the Union and where available internationally, the guidance and conclusions coming from the supervisory stress-testing or scenario analysis of climate-related financial risks conducted by EBA or the competent authorities.
