About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Basel IV Delayed Amid Coronavirus Chaos

Subscribe to our newsletter

The Basel Committee has delayed the implementation of Basel IV by a year following intense lobbying from the financial industry due to the coronavirus chaos, with a new deadline of 1 January, 2023.

The Committee’s oversight body, the Group of Central Bank Governors and Heads of Supervision (GHOS), last Friday endorsed a set of measures to provide additional operational capacity for banks and supervisors to respond to the immediate financial stability priorities resulting from the impact of the coronavirus disease on the global banking system.

“It is important that banks and supervisors are able to commit their full resources to respond to the impact of Covid-19. This includes providing critical services to the real economy and ensuring that the banking system remains financially and operationally resilient. The measures endorsed by GHOS aim to prioritise these objectives and we remain ready to act further if necessary,” said François Villeroy de Galhau, Chairman of the GHOS and Governor of the Bank of France.

The implementation date of the Basel III standards finalised in December 2017 (and widely referred to as Basel IV) has now been deferred by one year to 1 January, 2023, while the accompanying transitional arrangements for the output floor has also been extended by one year to 1 January, 2028.

In addition, the implementation date of the revised market risk framework finalised in January 2019 has been deferred by one year to 1 January, 2023, along with the deadline for the revised Pillar 3 disclosure requirements.

“The revised timeline is not expected to dilute the capital strength of the global banking system, but will provide banks and supervisors additional capacity to respond immediately and effectively to the impact of Covid-19,” says the Committee. However, the group also reiterated its expectation of “full, consistent and timely implementation of all standards” based on the revised timeline.

“Current events demonstrate once again the importance of a resilient financial system, which these reforms will help further reinforce,” it said.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: MiFID II: Data for best execution

Markets in Financial Instruments Directive II (MiFID II) strengthens the best execution requirement embedded in MiFID by expanding disclosure. Among the directive’s requirements are provisions to ensure investment firms provide appropriate information to clients on their order execution policy and publish a list of the top five execution venues used in the previous year for...

BLOG

Regulations in the Balance as Institutions Remain Sustainability-Focussed: ESG Summit London Review

Despite a perception that ESG is in retreat around the world, financial institutions continue to take the issue very seriously as a matter of risk management, a trend that continues to exert an influence on the data demands of organisations. It isn’t even the compliance imperatives of organisations operating in heavily regulated parts of the...

EVENT

Eagle Alpha Alternative Data Conference, London, hosted by A-Team Group

Now in its 8th year, the Eagle Alpha Alternative Data Conference managed by A-Team Group, is the premier content forum and networking event for investment firms and hedge funds.

GUIDE

Institutional Digital Assets Handbook 2023

After initial hesitancy, interest in digital assets from institutional market participants has grown over the past three to four years. Early focus inevitably centred on the market opportunities presented by bitcoin and other cryptocurrencies. But this has evolved into a broad acceptance of a potentially meaningful role for digital assets in institutional markets. It’s now...