‘Basel IV’ is here

The Basel Committee (BCBS) is the international body responsible for setting prudential rules for large, internationally active banks. Since the financial crisis of 2007/09, the BCBS has been updating the Basel II framework to further enhance the risk management and supervision of banks. It published its outstanding Basel III post-crisis regulatory reforms, also called 'Basel IV' by the industry, on 7 December 2017. This package of reforms includes changes to the standardised and internal models approach to credit risk, operational risk, leverage ratio, capital floors and credit valuation adjustment (CVA). These reforms are relevant for all banks, building societies and PRA-designated investment firms in the UK and have a proposed implementation from January 2022 onwards.

Please see below the Hot Topics PwC has produced on the key components of the “Basel IV” package.