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: High-Performance Networks & Low-Latency Connectivity for Trading

With financial markets becoming more complex and interconnected in today’s electronic trading environment, trading firms, exchanges, and infrastructure providers need to continually push the boundaries of network performance to stay ahead. Ultra-low latency, seamless connectivity, and resilient infrastructure are no longer just advantages – to stay competitive, they’re necessities. This webinar, part of the A-Team...

BLOG

RepRisk Roundtable London: Tackling Hidden Sustainability Risk in Private Markets with AI

Sustainability risk is moving into the core of capital markets decision-making, closely tied to conduct risk, counterparty exposure and reputational impact. For senior leaders across risk, investment, compliance, sustainability, and supply chain functions, the question how to interpret complex signals from vast quantities of data and apply them with confidence in credit, investment, and operational...

EVENT

TEST Event page 1

Now in its 15th year the TradingTech Summit London brings together the European trading technology capital markets industry and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

The Data Management Implications of Solvency II

Bombarded by a barrage of incoming regulations, data managers in Europe are looking for the ‘golden copy’ of regulatory requirements: the compliance solution that will give them most bang for the buck in meeting the demands of the rest of the regulations they are faced with. Solvency II may come close as this ‘golden regulation’:...