Back to the Future: Standardization in Basel IV
The Basel III reforms have been introduced through a series of regulatory changes in recent years, designed to address weaknesses in banks’ resiliency that were revealed during the financial crisis. Previous changes were designed to deal with the quantity and quality of bank capital and liquidity. This final set of reforms is aimed at improving the risk sensitivity of capital standards and will increase the transparency and consistency in the way banks measure and report their exposure to various risks, and the capital held against those risks.
OSFI is pushing for a faster transition to Basel III rules that will impact how banks can drive their capital requirements by gauging asset risk with their own statistical models.
AxiomSL along with PRMIA Toronto and Ernst & Young is please to host a dynamic discussion around the impact these reforms will have on the banking industry.