Basel III to “Basel IV”: What changed?
Navigating changes in the new regulatory standards impacting bank capital management
The Basel Committee on Banking Supervision (“BCBS”) officially unveiled the new recommendations for setting the capital requirements for the banking sector, commonly dubbed “Basel IV” in December last year. The new regulation will include reforms in the standardised approach for credit risk, the IRB-approach, the quantification of CVA risk and operational risk approaches, enhancements to leverage ratio framework and finalization of output floor. Deloitte has put together a placemat which highlights and elaborates the key changes from Basel III to “Basel IV”.