Basel 4

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 or, in the UK, as Basel 3.1.

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, timelines are not consistent across all jurisdictions and banks will also need to consider local variations in final requirements.

The EU proposals for amendments to the Capital Requirements Regulation (CRR3) in January 2023 are moving forward, with final rules expected by the end of 2023 or early 2024. In the UK, the PRA is consulting on its implementation proposals until end-March. The US is expected to set out its approach in Q1 2023. Implementation timelines for all three regions are likely to be consistent - from 1 January 2025 – but detailed interpretations of the standards may vary.

Banks face significant challenges as they stand up or refresh their Basel 4 programmes. They will need to ensure that they are well prepared to handle potential divergences in requirements across jurisdictions and they will be looking to achieve compliance within the required timelines and in a cost-effective manner. KPMG is actively supporting banks in all aspects of Basel 4 implementation, leveraging our global expertise – reach out to your local contacts below to discuss.

Further insights