Basel III

Basel III: information at your fingertips

Basel III was developed by the Basel Committee on Banking Supervision in response to the global financial crisis. It is the biggest regulatory change that the banking industry has seen in decades.

To bring the regulatory standards on bank capital adequacy and liquidity of the Basel Committee on Banking Supervision into European law, the European Commission has drafted its Capital Requirements Directive; “CRD IV”.

We have created an easy to use CRD IV navigator tool, which simply outlines the complex detail of the Capital Requirements Directive.

History

On 16 December 2010, the Basel Committee for Banking Supervision published details of global regulatory standards on banks’ capital adequacy and liquidity, as agreed by the Governors and Heads of Supervision and endorsed by the G20 Leaders at their November Seoul summit.

The aim of this reform is to protect financial stability and promote sustainable economic growth, but it will also profoundly impact the banking sector and its profitability.

How can you turn it to your advantage

How can you turn it to your advantage and make your compliance programme as effective as possible?

The new reform consists of arrangements that are complex and diversified, from both a quantitive and a qualitative perspective. Basel III is about liquidity coverage ratios, stable net funding ratios, capital conservation buffers, changes in the eligibility of capital, possible deductions from common tier-1 equity, backstop leverage ratios and much more: huge challenges for a firm that needs to understand and manage:

  • compliance issues
  • operational issues, in the sense that banks will have to undergo significant process and system changes to meet their compliance objectives as well as having to report and disclose more transparently
  • strategic issues, because institutions will endeavour to reflect on their balance-sheet strategies as well as having to re-think and adapt their business model.

How can we assist you?

Boosting compliance and turning it to your advantage requires a full range of experience and capabilities. We can assist you in

  • mobilising the necessary resources
  • understanding the reform and providing “to the point” training programs
  • analysing the impacts compared to Basel II
  • advising on the various technical issues of Basel III
  • processing the changes, including data and process control
  • reflecting on the business franchise
  • benchmarking your compliance programme
  • coaching your teams
  • upgrading communication between competence centres
  • giving the requisite assurance

Our commitment: to share thinking, experience and solutions with you and be your partner throughout the compliance programme. Plus, our Basel III services in Belgium allow you to access the PwC regulatory compliance network, which operates with a highly qualified team of experts and resources across many countries and in proximity to the relevant authorities.

Publications

Read more about Basel III and our solutions: