Understand the Impact of Basel IV Reforms

on the Worldwide Banking System

Understand the impact of Basel IV/FRTB(BCBS) - CRR III & CRD IV (EU) - 3.1 (UK) - Basel III Endgame (USA) reforms applied to credit risk, market risk/ FRTB, and operational risk. Online courses for self-study.

What is Basel IV?

Basel IV is the most extensive regulatory reform package ever introduced in the Basel regulations' history. It was put into effect on January 1, 2023. Its primary objective is to improve the calculation of risk-weighted assets (RWAs) and simplify the comparability of banks' capital ratios. Some of the significant changes introduced by Basel IV include:

Improving the standardized approaches for credit risk, market risk/FRTB, credit valuation adjustment (CVA) risk, and operational risk.

Constraining the use of the internal model approaches used by some banks to calculate their capital requirements.

Expanding a leverage ratio.

Replacing the existing Basel output floor with a more risk-sensitive floor.

In conclusion

Basel IV is the informal name for a set of proposed banking reforms known as Basel IV/FRTB(BCBS) – Basel CRR III & CRD 6 (EU) - Basel 3.1 (UK) - Basel III Endgame (B3E) (USA). It is the latest package in a series of international accords issued by the Basel Committee on Banking Supervision intended to bring greater standardization and stability to the worldwide banking system. It builds on the reforms begun by Basel I in 1988 that were later followed and supplemented by Basel II and Basel III.

Expand your Career Opportunities. Take online courses with REL

Risks Explained Ltd. (REL) courses are designed to help you gain a broad understanding of the Basel IV package of banking reforms, including its main goals, objectives, and challenges.

The lessons focus on three important areas: credit risk, market risk, and operational risk. These lessons are suitable for both practitioners and newcomers to the financial industry, regardless of their level of experience. Our courses are available online and can be taken through self-study. Upon completion of our courses, you will receive a certificate of completion that attests to your newly acquired skills and knowledge

Stay updated with the constantly evolving banking regulations.

The courses are structured in an easy-to-follow format and designed for online self-study. The lessons feature detailed tables, graphs, and practical examples to improve your understanding of the subject.