Basel IV

The next generation of RWA

Basel IV encompasses more than just finalising Basel III – According to many bank representatives the requirements of the Basel committee have expanded so much in recent years that we must already start referring to Basel IV.

Basel IV - The next generation of RWA

  •  Finalising Basel III and evolving Basel IV
  • The details of the latest regulatory requirements
  • This page takes a look at your challenges and our solutions 

The implementation of the Basel IV framework is already a remarkable challenge for the European banking landscape, as methodologies for the determination of capital requirements are to be revised. In doing so, capital calculations across all risk types will be fundamentally amended.


PwC Solutions

PwC has already developed numerous thematic solutions and project approach models that will make your bank easier to implement the Basel IV requirements.

PwC Basel IV / CRR II Academy 2018: The road from Basel III to Basel IV 

Basel IV is one of the major challenges for the financial markets in the next five years. The Basel IV changes will impact the calculation of risk weighted assets and capital ratios of all banks and therefore will affect the bank’s strategy and business models.

With our three-day Basel IV Academy, we provide an in-depth training on all relevant aspects and risk types. The combination of classroom training, case studies and discussion will enable you to develop a thorough understanding on the details of the planned regulations – and what they will mean for your bank.

We are currently planning one event in London on April 16th - 18th and another event in Frankfurt on April 25th-27th. Both academies will be completely identical. The training will be held in English and also all documentation will be in English. Participants can register either for all three days or select one or two days - further information including the full agenda, venue details, and pricing is available in our flyer. 

Download the event flyer 

Register for the Academy

*The organiser reserves the right to cancel the event due to an insufficient number of participants or due to circumstances beyond its control. All event fees will be fully refundable. 

CRR II Webcast

This webcast includes details on the finalisation of Basel III, the implementation of the Basel IV regulations into CRR II and the resulting challenges for your credit institution.
 

Click here for further information on the CRR II webcast 

 

International Basel IV-Channel, Investment funds, 31th March, 2017

loading-player

Playback of this video is not currently available

Basel IV Calculation tool

How PwC can assess the quantitative impact of the Basel IV framework on your portfolio?

Find out more about about the PWC Credit Risk Calculator

Contact Martin Neisen for a further demo of the tool

 

Credit Risk Calculator

Basel IV Channel: Credit Risk Calculator

loading-player

Playback of this video is not currently available

Basel IV Toolbox

Small, useful... and always ready to hand - a perfect guide to Basel IV...

If you have any questions about our Toolbox, please contact your local Basel IV leader.


Click here for more information on the Basel IV Toolbox

Download the Basel IV Toolbox

Basel IV poster

Our new Basel IV poster offers you an in-depth overview of all regulatory actions of the Basel Committee in relation with Basel IV. Our "Basel IV" poster shows the legal basis, identifies the relevant Basel papers and illustrates the interconnection's between the individual arrangements. By requesting your copy of the poster you receive a compact overview of all "Basel IV" related regulatory activities.

Contact your local PwC Basel IV Territory Leader for a copy

View our Basel IV Poster

Please note this poster is for illustrative purposes only and therefore non printable - please contact your local Basel contact who will provide a hard copy. 
Please note this poster is for illustrative purposes only and therefore non printable - please contact your local Basel contact who will provide a hard copy. 

*We continue to update the poster to reflect changes in Basel IV regulation - this version is correct as of April 2018 

Basel IV book: The reference book for those who need more detail

Our PwC experts from Regulatory Management have written a comprehensive Basel IV book, which provides the first 'self-study' on Basel IV innovations by means of prepared examples and further background information on key changes.
 

Order a copy of our Basel IV book

What does this mean for banks?

For banks, this means that the next steps for efficient implementation must be planned and managed at an early stage and integrated into the organisation’s strategy. PwC can support your bank on the basis of extensive experience gained from different supervisory projects. In the context of Basel IV, we recommend a holistic project approach, divided into thematic modules in order to adequately meet the thematic linkages, as well as identifying and managing the strategic impacts. PwC has already developed numerous thematic solutions and project management models to help banks to implement Basel IV requirements. You can view the variety of PwC solutions here.

‘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.

Explore our insights

Basel IV - Revised trading and banking book boundary for market risk

Starting in 2012, the Basel Committee published several consultation papers on a Fundamental Review of the Trading Book (FRTB) to adapt existing rules for the capitalisation of market risk. One of the most apparent changes to the trading book regime is the revised trading/ banking book boundary definition.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

Basel IV: Calculating EAD according to the new standardized approach for counterparty credit risk (SA-CCR)

Response to the Basel Committee’s final paper on the new standardized approach for calculating the EAD of counterparty credit risk exposures (SA-CCR). This booklet will help you to gain an overview of the proposed rules in order to prepare for the challenging tasks ahead.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

Contact us

Martin Neisen
Partner, Global Basel IV Leader
Tel: +496 9958 53328
Email

Abdellah M’barki
Basel IV Leader, Netherlands
Tel: +31 612134687
Email

Follow us