Basel IV - BCBS finalises reforms on Risk Weighted Assets (RWA)
Publisher:
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft
An overview of how banks can align risk calculation systems with Basel IV's standardized approach and capital floor requirements.
Standardized approach requirements for credit risk, operational risk, counterparty credit risk, and market risk
Phased capital floor implementation through 2027 to constrain internal model discretion
Operational and compliance updates needed for risk calculation methodologies and systems
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Year:
2018
Language:
English
Pages:
91
File Format:
Abstract
On December 7th, 2017 the Basel Committee on Banking Supervision published finalised rules on a number of topics concerning the calculation of risk weighted assets. These new rules will fundamentally change the methods and approaches used when calculating RWA and capital ratios for all banks, big and small, complex or not, in the coming years. While officially termed the finalisation of Basel III, the industry has long since started to call the package of reforms Basel IV, to take account of the huge scale of changes. This brochure will give you an overview of Basel IV and how banks can deal with the ensuing challenges.