Mittwoch, 13 Dezember 2017 16:46

Basel IV

Basel II, Basel III, and Basel IV: Moving (straight) ahead. On 7 December 2017, the oversight body of the Basel Committee on Banking Supervision agreed upon the new set of regulatory rules for banks - dubbed by the industry as Basel IV, while categorised by the Basel Committee as the concluding part of Basel III, finalising post-crisis reforms. The cumulative impact assessment of the European Banking Authority can be found here, incl. a brief overview of the revisions (1.higher risk-sensitivity of standardised approaches for credit and CVA risk; standardised approach for operational risk; 3.different constraints on the use of internal models; 4.amended measurement of leverage exposure and a leverage ratio surcharge for global systemically important banks; 5.introduction of an aggregate output floor on internal model results at 72.5% of standardised approaches results).