What requirements is Basel 4 likely to include?

Basel IV is likely to ...

Basel IV is likely to include:

• Requiring banks to meet higher maximum leverage ratios (an initial leverage ratio maximum is likely to be set as part of the completion of the Basel III package);
• Emphasising simpler or standardised models, rather than banks' internal models, for calculation of capital requirements (the Basel committee has made initial proposals on simpler models as part of the completion of the Basel III framework);
• 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

Published September 2, 2016 19:00 by Casey Brucken, AVP - IT Systems Analyst at Credit Suisse