Basel IV

Basel IV is an international framework for banking supervision and regulation developed by the Basel Committee on Banking Supervision (BCBS). This framework builds on the previous Basel Accords (Basel I, Basel II and Basel III).

Basel IV represents an important step in banking regulation and aims to further improve the stability and robustness of the global banking system and reduce risks in the banking sector. The implementation of Basel IV may vary in different countries and regions, as national supervisory authorities can adapt the international framework according to their own needs and circumstances. It is therefore crucial for banks and financial institutions to consider the specific requirements and implementation timetables in their respective jurisdictions.

The Basel IV regulations will be introduced in the European Union in 2025. Following the adoption of the final version of the EU banking package by the EU Commission, the EU Parliament and the EU Council, the package will be published in the EU Official Journal. The new regulations are expected to be officially announced at the beginning of 2024 and will then enter into force 20 days after publication. Full implementation of the changes to the Capital Requirements Regulation (CRR) is planned for 1 January 2025, with certain elements being phased in over the coming years. We have compiled further details on this in a focus topic: "Changes to the EU banking package: Basel IV on its way".

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