Adverts

Open Access Articles- Top Results for Basel 4

Basel 4

Basel 4 is a proposed standard on capital reserves, for banks, which would follow Basel III.[1]

Requirements

Basel 4 is likely to include:[2][3]

  • Requiring banks to meet higher minimum leverage ratios;
  • Emphasising simpler or standardised models, rather than banks' internal models, for calculation of capital requirements;
  • More detailed disclosure of reserves and other financial statistics.

British banks alone may have to set aside another £50Bn of reserves to meet Basel 4 requirements.[4]

History

Basel III's rules increased the amount of capital that banks must hold, and set a core tier 1 capital ratio of 7%. The technical implementation deadline for Basel III is 2019, but recent developments in the banking market have suggested that even stricter rules may be applied by a later framework, which has been dubbed "Basel 4".[5] The Basel Committee on Banking Supervision released a consultative paper, seeking out views on the Committee's plan to change how capital requirements and market risks are calculated.[6]

External Links

References

  1. ^ "Regulators look ahead to 'Basel 4'". ICAEW. Retrieved 18 May 2014. 
  2. ^ "Basel 4 – Emerging from the mist". KPMG. Retrieved 18 May 2014. 
  3. ^ "South Africa: Basel 4 – Emerging From The Mist?". Mondaq. Retrieved 18 May 2014. 
  4. ^ "KPMG: UK Banks Facing New £50bn Capital Hole as 'Basel IV' Emerges". International Business Times. September 12, 2013. Retrieved 18 May 2014. 
  5. ^ "KPMG Warns Over £50 Billion ‘Basel 4′ Capital Hole". Moneybeat. Retrieved 18 May 2014. 
  6. ^ "Introducing “Basel 4”?… Basel Proposes Changes to Trading Book Market Risk Capital Requirements". Advantage Reply.