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: ESG data sourcing and management to meet your ESG strategy, objectives and timeline

ESG data plays a key role in research, fund product development, fund selection, asset selection, performance tracking, and client and regulatory reporting, yet it is not always easy to source and manage in a complete, transparent and timely manner. This webinar will review the state-of-play on ESG data, consider the challenges of sourcing and managing...

BLOG

UK Moves Dial on ESG Data Assurance and Regulations

The UK has moved further along the dial of sustainability and reporting regulations with a slew of developments that suggest new rules are imminent. Announcements covering data assurance and biodiversity disclosure standards were announced a week after the Chancellor of the Exchequer signalled in his annual budget speech that ratings companies will come under the...

EVENT

ESG Data & Tech Summit London

The ESG Data & Tech Summit will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

Valuations – Toward On-Demand Evaluated Pricing

Risk and regulatory imperatives are demanding access to the latest portfolio information, placing new pressures on the pricing and valuation function. And the front office increasingly wants up-to-date valuations of hard-to-price securities. These developments are driving a push toward on-demand evaluated pricing capabilities, with pricing teams seeking to provide access to valuations at higher frequency...