Introduction
Since the financial crisis of 2007/08, supervisors and regulators around the world have been active to adjust the global framework of banking regulation to ensure that a crisis like this will never happen again. At the international level, the Basel Committee for Banking Supervision concluded its work with the Finalisation of the Basel III framework (aka “Basel IV”) in 2017. At the level of the European Union, the reforms are implemented in EU law with the revised Banking Package. It includes significant changes to the Capital Requirements Regulation (CRR III) and Capital Requirements Directive (CRD VI). Designed to make financial markets more stable by better measuring the risks financial institutions take as part of their business model, it is clear that implementing these rules is a major challenge for all EU banks.
The EU Banking Package at a glance
While implementing Basel IV in the European Union is clearly the main element of the revised Banking Package, the EU used the opportunity to implement other changes as well:
Your challenges
CRR III has the most significant impact on the calculation of risk weighted assets since the introduction of the Basel II framework in 2004. Both, standardised and internal model-based approaches, for all risk types are subject to significant revisions:
To learn more about the changes and their impact on banks, please follow the links below:
Our solutions
At PwC we have been following the development of the Basel IV rules and their EU implementation since the very beginning. Our experience and insights are accessible to you through a number of formats:
PwC’s international CRR III Team
Our international CRR III - team consists of experienced experts in the area of banking risk and regulation from all over Europe. To learn more about the contact persons in your country, please click below:
Grasping the full scope of Basel IV
A comprehensive overview of CRR
Whitepaper CRR 3 to Go
An interactive and in-depth overview of CRR 3’s main revisions and implications
