Welcome to the KPMG Global Insights page for Basel 4. Here you will find regulatory updates and analysis, links to KPMG solutions and details of key contacts across KPMG’s international network. For our latest views, see the “Moving the dial” series.
As final rules emerge and are finalised, it is time for banks to focus firmly on the implementation of the Basel 3 final reforms, commonly referred to as Basel 4.
Implementation was delayed due to the pandemic, but regulators around the globe are now pushing ahead with their plans. The Basel Committee on Banking Supervision has been clear that a ‘full and consistent’ implementation of the framework should be targeted ‘as soon as possible’. However, different jurisdictions are moving at different speeds and banks may need to consider multiple approaches and timelines.
Key dates
Standards published 2017
Proposed implementation timeline from 1 January 2023 with phasing in of output floor to 1 January 2028
European Commission proposed amendments to Capital Requirements Regulation (CRR3) in October 2021
Adopted by European Parliament January 2023 and moved into trilogue phase
Final rules expected end 2023 or early 2024
Implementation timeline from 1 January 2025 with phasing in of output floor to 1 January 2030
PRA consultation on UK implementation closes 31 March 2023
Final rules expected end 2023 or early 2024
Implementation timeline from 1 January 2025 with phasing in of output floor to 1 January 2030
PRA has advised banks to submit applications for IMA permissions under FRTB by 1 January 2024 and for IRB by 1 July 2024 if required to be in place by 1 January 2025
Notice of Proposed Rulemaking (NPR) expected Q1 2023
Implementation timeline from 1 January 2025 with phasing in of output floor to 1 January 2030
Implementation dates vary – typically from 2024 to 2025 with a 5-year phase-in for the output floor
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How KPMG can help
Basel 4 is broad in scope and impact. KPMG has the credentials and expertise to support you in all aspects of your Basel 4 implementation including:
- Carrying out gap assessments and implementation plans
- Planning for and managing any increase in capital requirements
- Upgrading data, systems and (internal and external) reporting
- Applications to use internal model approaches (where these are still available)
- Asset portfolio adjustments and balance sheet optimisation in response to changes in risk weightings
- Assessing the revised capital standards in the context of all other regulatory reforms and market developments
Frequently Asked Questions
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