Final text of ‘Basel IV’ published

The Basel Committee has endorsed the final set of reforms to Basel III (referred to by some as Basel IV).

These reforms will mainly affect the affect the methodologies used by banks in calculating risk weighted assets.  It is expected that many banks will have increased capital requirements as a result. However, to soften the impact, the implementation time has been extended: the new rules will take effect in 2022 and be subject to a five year implementation period, as well potentially also being affected by the time needed to implement the requirements into local laws.