Basel IV | Wolters Kluwer
Basel IV

Basel III revisions are complex, covering greater compliance obligations as well as more stringent capital requirements which will affect balance sheets and P&L statements. No wonder the revisions are often referred to as Basel IV. However, there is an upside: the level of required integration is so thorough that firms which execute it effectively should improve their business efficiency, not just fulfill their regulatory burden.

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Basel IV – A Holistic Approach

 

  • Consistency of all calculations, irrespective of their purpose, e.g. RWA, leverage ratio, liquidity, large exposures and IRRBB.
  • Proportionality of each type of risk; calculation methods will vary depending on the level of risk.
  • Continuous compliance; meeting the regulatory requirements “at all times”.
  • Output floor: RWA using internal models must be at least 72.5% of capital with standardized methods.

 

Basel IV : A Total Overhaul

OneSumX for Basel IV

OneSumX for Basel IV is the best-in-class integrated regulatory compliance and reporting solution that helps financial firms achieve consistency and address interdependencies within Basel IV.

Using a single source of data for finance, risk and regulatory reporting that is enriched with value-added content from our in-house experts, OneSumX for Basel IV helps remove barriers triggered by traditional silo structures and generate a deeper insight for the entire enterprise.

OneSumX for Basel IV provides a powerful way to leverage the calculations performed by the solution to not only comply with the supervisory demands at all times but allow banks to use the intelligence for risk-informed decision-making.

 
 
Approach Basel IV as a unified program, supported by a single solution which provides both regulatory calculations and reporting.  
 
Support business decision-making, including deals, by measuring metrics (RWA, LCR, …) along future scenarios in both risk and budgeting context.
 
Ensure cost-efficiency by monitoring and controlling Basel IV metrics and processes across different entities
 
Leverage dependencies between other subsets of Basel IV such as SA-CCR, FRTB, Leverage Ratio, Disclosures (Composition of Capital & RWA, Key Metrics etc).  
 
Ensure compliance at all times, in line with the Basel IV package  
 

Use Cases

 
OneSumX for Basel IV for Compliance

A single solution which combines data, calculations and reporting, covering all standardized approaches across all risk types (from credit to market risk, through operational, settlement, CVA and counterparty credit risk) and all bank sizes.

OneSumX for Basel IV for Business

A scalable solution offering Exact Regulatory Metrics (not proxies) for business projection scenarios and deal-related decision-making.

OneSumX for Basel IV for Compliance

A solution which allows you to manage CRD V compliance of the entire EU group; data, prudential consolidation as well as regulatory calculations and reporting for each entity and consolidation circle from one single application.

Insights

 
 
(Published September 25, 2019) Basel IV/CRD V – with staggered implementation deadlines set out for its various components – are due to come into effect on 1 January 2022. But what does this timeline mean for your firm in the long-term, as well as the more immediate future?

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(Published September 25, 2019) What are the key implications of the revised liquidity requirements within Basel IV / CRD V? Can firms turn compliance with these requirements into a business benefit?
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(Published February 11, 2019) This commentary discusses the challenges of SA-CCR and provides practical considerations around solution implementations.
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(Published July 27, 2018) Read our commentary to learn about necessary steps for implementing the Standardized Approach for Market Risk
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(Published December 04, 2018) Read our commentary to learn about practical steps for implementing the Default Risk Charge of Non-Securitizations.
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