IT implications for Basel III & CRD IV

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IT implications for Basel III & CRD IV

Executive summary

Following a series of ‘quick patches’ to amend some of the existing rules, the review culminated in the release of a comprehensive set of reform measures, developed by the Basel Committee on Banking Supervision, to strengthen regulation, supervision and risk management within the banking sector (Basel III framework).

In Europe, this effort has been transposed into three Directives: Capital Requirements Directives II and III for the patches and Capital Requirements Directive IV (CRD IV) for the Basel III rules. The Capital Requirements Regulation (CRR) is the legal act implementing the new Capital Requirements Directive IV.

The CRD IV package will become applicable as of 1 January 2014, even if EU member states have yet to transpose the directive into national law. CRD IV/ CRR will require banks to perform a major update to their IT risk landscape, by reinforcing existing principles
regarding capital adequacy as well as by introducing new requirements concerning liquidity risk, leverage ratio and risk management in a crisis context. These changes may result in strategy overhaul, process review and IT system impact.
 

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Inside magazine issue 3 – February 2014

Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.

Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).
 

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