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.

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

 

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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