Basel IV introduced by CRD VI / CRR III

Basel IV encompasses more than just finalising Basel III – The implementation of CRR III/ CRD VI (Basel IV) in 2025 in the EU represents one of the biggest challenges for financial institutions in the coming years.

The introduction of new rules concerning the calculation of risk-weighted assets, and thus the capital ratios of all banks, has a fundamental impact on the development of banks' strategies and shapes their future business models.

Strategic, structural and operational adjustments are required. Indeed, optimised implementation of all changes related to Basel IV at the right time requires a detailed knowledge and an in-depth understanding of the reforms. Regulatory change is a complex challenge that can only be addressed with a coherent and comprehensive approach.

This training course is designed as an essential step to grasping Basel IV’s full implications. It is based on some level of theory but also case studies. The training will integrate a significant amount of market feedback and insight.

To take the most of this module, a minimum knowledge about Basel IV is preferable, for example through our Basel IV - Foundation module.

19 September 2024 (EN) - 9am-12pm - On site

Price: 615.00€

Duration: 3h

Language: Available in English and French. The supporting material is only available in English.

Number of participants: up to 20

You are interested in participating in this course but no sessions are currently scheduled? Please contact us and you will be added to our Show Interest list.

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objectifs

Objectives

By the end of this training, the participants will be able to:

  • understand regulatory framework and timeline;
  • understand the most important changes introduced by the Basel IV prudential framework:

-Capital requirements 

-Prudential reporting 

-Public disclosures 

-Governance and risk management set up

  • identify potential impact on the business model and product offering.

 

Contenu

Content

Minimum experience with Basel III is preferable.

1. Introduction to Basel IV

  • Regulatory background
  • Timeline

2. Credit risk

  • Revisions of the credit risk approaches
  • Requirements for the use of external ratings and due diligence

3. Market risk

  • FRTB framework
  • Revised trading book boundaries

4. CVA

  • Revisions of the CVA charge approaches

5. Operational risk

  • New standardised approach for operational risk

6. Reporting and disclosure

  • New reporting and disclosure requirements: NPE, internal models, output floor, CVA, operational risk, market risk
  • Disclosures: reduced costs through enhanced transparency

7. Internal governance and risk management

  • Climate risk and broader ESG risks
  • Enhancement of internal governance framework (e.g. “Fit & Proper” assessment)
  • Revised rules for third-country branches (alignment of supervisory practices)

8. Expected strategic and operational impacts as well as an overview of the initial feedback received from Luxembourg based credit institutions

Target audience

  • Chief Financial Officers (CFOs)
  • Personnel and executives working in the risk management department
  • Personnel and executives working in the internal audit or compliance department
  • Personnel and executives working in the accounting and reporting department
  • Financial analysts
  • Credit analysts
  • Liquidity specialists
Our lead experts

Our lead experts

This training will be coordinated by Jean-Philippe Maes, Partner at PwC Luxembourg.

Jean-Philippe is a partner in PwC's Regulatory Compliance services. He leads the firm’s banking and PFS risk Advisory team and is the lead advisor for CRD/CRR topics.

He has over 15 years of experience in Basel III areas and has helped many banks, investment firms and management companies to implement Basel III and  prepare for Basel IV. He has worked in most dimensions of risk management, from operational risk to internal models, encompassing reporting aspects (such as COREP/FINREP) and governance matters.

Lately,  Jean-Philippe has been focusing on risk appetite frameworks and the management of non-financial risks such as climate, conduct or reputational risks.

Contact us

Contact details

PwC's Academy, Crystal Park Building, PwC Luxembourg

Tel: +352 49 48 48 4040

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