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.
With rules now agreed in most jurisdictions, it is time for banks to focus firmly on their implementation of the Basel final reforms, referred to as Basel 3.1 in the UK, Basel 3 Endgame in the US or, alternatively, Basel 4. 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, timelines are not consistent across all jurisdictions and banks operating globally will need to consider local specificities in regulatory approaches.
Banks face a significant book of work and multiple challenges as they stand up or refresh their Basel programmes - ranging from gap analysis assessments against existing rules, to identifying and making necessary changes to operating models, to building new RWA calculators, sourcing data and submitting model applications. KPMG member firms are actively supporting banks across all aspects of their Basel implementations, leveraging our global expertise – reach out to your local contacts below to discuss.
Key dates
Standards published 2017
Proposed implementation timeline from 1 January 2023 with phasing in of output floor to 1 January 2028
- October 2021 - European Commission proposed amendments to Capital Requirements Regulation (CRR3)
- June 2024 - final rules published in Official Journal of the EU
- Implementation of most components from 1 January 2025 with phasing in of output floor to 1 January 2032 (and other transitional measures)
- Market risk component to be implemented from 1 January 2026
- PRA consultation on UK implementation of Basel 3.1 closed 31 March 2023
- December 2023 - near-final rules for market risk, credit valuation adjustment (CVA) risk, counterparty credit risk and operational risk
- September 2024 – near-final rules for credit risk, the output floor and reporting and disclosure requirements
- Q4 2024 - final consolidated Policy Statement
- Implementation from 1 January 2026 with phasing in of output floor to 1 January 2030
- July 2023 – Notice of Proposed Rulemaking (NPR) – US Basel III Endgame proposals
- September 2024 – confirmation of broad material changes (pending) to proposals
- Estimated implementation from 1 January 2026 to 1 January 2029
Implementation dates vary – typically from 2024 to 2025 with a 5-year phase-in for the output floor
Related perspectives and insights
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
KPMG is developing a bank of frequently asked questions to share with our clients. If you would like to submit a question for our industry experts, please send it to mailto: go-fmemafsriskandreg@kpmg.com.
Please note that this forum is for technical or regulatory questions. Please do not submit client-specific enquiries via this link.
Mr Mariano Lasarte
Financial Services, KPMG's ECB Office: Partner for Regulatory and Supervisory issues
KPMG in Spain
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