International Journal of Social Science & Economic Research
Submit Paper

Title:
BASEL IV AND ITS IMPACTS ON BANKS

Authors:
Sali Bakare

|| ||

Sali Bakare
Business Administration Division, University of the People, California, USA

MLA 8
Bakare, Sali. "BASEL IV AND ITS IMPACTS ON BANKS." Int. j. of Social Science and Economic Research, vol. 3, no. 1, Jan. 2018, pp. 380-390, ijsser.org/more2018.php?id=24. Accessed 2018.
APA
Bakare, S. (2018, January). BASEL IV AND ITS IMPACTS ON BANKS. Int. j. of Social Science and Economic Research, 3(1), 380-390. Retrieved from ijsser.org/more2018.php?id=24
Chicago
Bakare, Sali. "BASEL IV AND ITS IMPACTS ON BANKS." Int. j. of Social Science and Economic Research 3, no. 1 (January 2018), 380-390. Accessed , 2018. ijsser.org/more2018.php?id=24.

References
[1]. Dormas B, Pit V. Basel IV: Changing the regulatory landscape of banks. 2017; Retrieved from https://www.capgemini.com
[2]. Durante B. What does Basel IV really mean for U.S. banks? 2016; Retrieved from https://marketintelligence.spglobal.com/
[3]. Groendahl B, Brush S. France holds out as bank regulators drive for Basel overhaul. 2017; Retrieved from https://www.bloomberg.com
[4]. Kpmg.com The world awaits: Basel IV nears completion. 2016; Retrieved from https://assets.kpmg.com/
[5]. Magnus M, Duvillet-Margerit A, Mesnard B. Upgrading the Basel standards: from Basel III to Basel IV? 2017; Retrieved from http://www.europarl.europa.eu/
[6]. Meager L. Basel IV: Where is the US? 2017; Retrieved from http://www.iflr.com/
[7]. Quesnel T. Implications of ongoing Basel IV debates. (n. d.); Retrieved from https://www.rolandberger.com
[8]. Schneider S, Schrock G, Koch S, Schneider R. Basel IV: What is next for banks? 2017; Retrieved from McKinsey.com

Abstract:
The Basel framework, an international standard for bank regulatory capital requirement, was first enacted in 1988. The Basel Committee on Banking Supervision (BCBS) has updated the framework a few times in 1996, 2010, and in 2016. The last update which started in 2016 (coined as Basel IV) is not yet finalized. The Basel objective is to ensure that banks hold sufficient capital to cover their risks and facilitate comparability of banks' capital positions. Basel I was focused on credit risk; and was updated in 1996 to include market risk components. Basel II allows banks to use their internal models; however, supervisory agencies may impose additional capital requirement as they deem fit. The 2008 financial crisis triggered an adjustment to Basel II with the introduction of capital buffer and increased capital requirements. And Basel III was born. After thorough analysis, the BCBS proposed some amendments to Basel III framework. With a set of additional disclosure requirements, a revision of the leverage ratio, and a treatment for sovereign risk exposures to Basel III, Basel IV was proposed. The US is a major advocate of Basel IV; however, because the Federal Reserve Bank governor resigned in February 2017 and the Board is missing three other seats, Basel committee has to put a hold on finalizing Basel IV.