The European Commission has published its proposals for the Capital Requirements Directive IV package which fundamentally overhauls the substantive prudential rules applicable to institutions. The proposals are intended to replace the Capital Requirements Directive ("CRD"). The proposals consist of two parts: a new Directive governing the access to deposit-taking activities and a new Regulation governing how activities of credit institutions and investment firms are carried out. The proposed Regulation contains the detailed prudential requirements for credit institutions and investment firms and covers: (i) capital; (ii) liquidity; (iii) leverage ratio; (iv) counterparty credit risk; and (v) a single book rule. The proposed Directive covers areas of the CRD plus four new elements covering enhanced governance, capital buffers, enhanced supervision and sanctions.