‘Basel IV’: Big bang or the endgame of Basel III?
BCBS finalises reforms on Risk Weighted Assets (RWA) - The Basel Committee on Banking Supervision’s announcement – December 2017
On December 7th the Basel Committee for Banking Supervision has published its final documents on the Reform of Basel III which are commonly referred to as "Basel IV".
These reforms comprise - among other issues - reforms of the standardised approach for credit risk, the IRB-approach, the quantification of CVA risk, operational risk approaches and last but not least the final calibration and design of the output floor.
With respect to the consultative papers issued by the Basel Committee the final papers show a significant amount of modifications that will have varying effects on individual banks.
In order to prepare for the upcoming reforms banks will now need to assess the finalised documents with respect to their individual portfolios in order to obtain transparency on the likely effects of the reforms to the business model of the bank.
To hear our experts thoughts on the new Basel reforms, the impacts for banks and how PwC can help please listen to the latest Basel IV international channel or download the Basel IV summary.