Basel IV

The next generation of RWA

Basel IV at a glance: 

Basel IV is the informal name for a suite of regulations which, taken together, represent a major change in the calculation of risk weighted assets. The regulations are due to be phased in starting in 2018, and may take up to 7 years to be fully implemented with a stepped approach to applying capital increases already proposed in Europe.

Basel IV is not an official term, and BCBS generally refer to the completion of the Basel III programme of work. At PwC we consider Basel IV to be the suite of regulations focussed on determination of risk weighted assets, as distinct from earlier phases of Basel III which focussed on the definition of capital and updates to the liquidity regimes.

Basel IV regulations cover the following areas:

  • Credit Risk
  • Securitisation
  • Counterparty Credit Risk
  • Market Risk (the Fundamental review of the trading book)
  • Operational Risks
  • IRRBB
  • Step-in and other risks

 

 

Regulators are still developing their responses to these proposals, and with the publication of CRD V in Europe, the deadlines for implementation are becoming more concrete. There is still scope for regulatory change, but with many areas already finalised, banks are starting to ramp up projects and develop responses.

APRA, as a member of the Basel Committee, has generally implemented Basel regulations with only some local variation, and they have indicated that they will continue to do so. However, APRA have shown a willingness to take into account local considerations where they feel it is necessary and suitable for the Australian marketplace.

This page provides an Australian view of the global PwC Basel IV response, and will be updated as new regulatory developments take place.

PwC’s Basel IV Global Task Force:

PwC have set up a global team to bring together experts across the world in regulation, risk and a range of related disciplines, to ensure we can provide the most comprehensive and up to date information on Basel IV developments.

The Australian team provides local analysis of how the changes impact local banks, as well as enabling local clients to use the full global expertise of PwC.

We will be running a series of Webinars on key topics, as well as regular updates as the regulatory environment develops. See  below for details and how to sign up for Webinars as well as any updates.

 See below for an update from the global leader. 

Latest news from Basel IV: Challenges and Implications - 28th october 2016

loading-player

Playback of this video is not currently available

 

In his latest video, Martin Neisen (Global Basel IV Leader) takes a look at the latest challenges and implications arising from Basel IV.

The Australian team provides local interpretation of the global regulations, and expert impact analysis. 
Full details of the team are provided here and to register for updates please follow the attached registration link.

Upcoming Events: Webinar

Webinar Series 2017  

2 June:

Credit risk: Standard and Advanced Approaches

4 August:

IFRS 9: Focus on Regulatory Reporting and how it relates to the Basel Framework

October:

FRTB: Update on Global approaches and Australian impacts

November:

Use of Internal Models and the impact of a capital floor [Subject to Basel Updates]

PwC Australia are running a series of events on Basel IV related topics, starting with a Webinar Series as shown above. Each webinar will include details of the regulations, a focus on the Australian impact, as well as market update with any relevant developments from the Basel Committee.

Please register your interest and details will be sent through as they are finalized for each event:

Register Interest & invitations will be sent

​Future webinars will cover ​a range of subjects, includin​g:

  • SA-CCR and CVA
  • Use of internal models. BCBS 362
  • ​Other subjects as requested.

Educational Materials:

PwC have developed a range of tools to help you understand the impacts of these regulatory changes.

 

Australian webinars

The Australian editions of Basel IV webinar series can be viewed below.

loading-player

Playback of this video is not currently available

Webinar 3: IFRS 9 and Basel IV. Interaction of Accounting and Regulatory changes.

This webinar discusses the intersection of Accounting (IFRS 9) and Regulatory(Basel IV) changes. Please download the presentation copy here:

International Basel IV-Channel, Investment funds, 31th March, 2017

loading-player

Playback of this video is not currently available


Previous editions of the Basel IV channel can be found here: PwC Basel IV channel 

Basel IV Channel

As the Basel committee continues its drive to strengthen the regulation, supervision and practices of banks worldwide, the committee has produced, and continues to produce a number of consultation and discussion papers which point to a significant revision of the Basel Framework. This revision may well be considered “Basel IV”.

While the impact of this new regulatory agenda will be felt by all banks, regardless of size or business model, it will also present banks with the opportunity to reassess, address and embed its risk and governance strategy into its business models and wider strategies. 

PwC considers its task to inform you in a prompt and flexible way about Basel IV. In addition to informing you through newsletters and through our website, we organise periodic seminars and have launched our Basel IV Channel. The Channel is a new medium to give you a periodical overview on current topics around Basel IV. It comprises a series of online lectures supported by slides. Within a time frame of 15 to 30 minutes we deliver you a compact overview of the current issues related to Basel IV.

Previous editions recorded in Europe can be viewed at the PwC Basel IV Channel.  Australian editions will be added as they become available. Register here for the Australian webinars.

Basel IV Poster

Our new Basel IV poster offers you an in-depth overview of all regulatory actions of the Basel Committee in relation with Basel IV.

From "Capital Floor" to "SA-CCR", from the new securitisation rules up to the CVA capital charge.

Our "Basel IV" poster shows the legal basis, identifies the relevant Basel papers and illustrates the interconnection's between the individual arrangements. By requesting your copy of the poster you receive a compact overview of all "Basel IV" related regulatory activities.

Contact your local PwC Basel IV Territory Leader for a copy

Contact us

Sarah Hofman
Partner
Tel: +61 (2) 8266 2231
Email

Colin Heath
Leader - Banking and Capital Markets
Tel: +61 3 8603 0137
Email

Yura Mahindroo
Partner
Tel: +61 (2) 8266 0585
Email

Katherine Martin
Director
Tel: +61 (2) 8266 3303
Email

Nick Scott
Senior Manager
Tel: +61 (3) 8603 0346
Email

Nicole Karsten
Senior Manager
Tel: +61 (2) 8266 1765
Email

Follow us