Basel IV introduced by CRD VI / CRR III

Minimum experience with Basel III is preferable.

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. The 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 around some level of theory but also around case studies. The training will integrate a significant amount of market feedback and insight.

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

By the end of this training, 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.

Minimum experience with Basel III is preferable.

• Introduction to Basel IV
  • Regulatory background
  • Timeline
• Credit risk
  • Revisions of the credit risk approaches
  • Requirements for the use of external ratings and due diligence
• Market risk
  • FRTB Framework
  • Revised trading book boundaries
• CVA
  • Revisions of the CVA charge approaches
• Operational risk
  • New standardised approach for operational risk
• Reporting and disclosure
  • New reporting and disclosure requirements: NPE, internal models, output floor, CVA, operational risk, market risk
  • Disclosures: reduced costs through enhanced transparency
• Internal governance and risk management
  • Climate risk and broader ESG risks
  • Enhancement of internal governance framework (e.g. “fit and proper” assessment)
  • Revised rules for third-country branches (alignment of supervisory practices)
• Expected strategic and operational impacts as well as an overview of the initial feedback received from Luxembourg based credit institutions

An attendance certificate will be sent to participants.

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

Jean-Philippe Maes is a partner with over 15 years of expertise in Basel III, regulatory reporting, risk management, and internal governance, including Basel IV preparation. He has supported banks, investment firms, and management companies in implementing regulatory frameworks and managing risks from operational to internal models, including COREP/FINREP reporting. Recently, his focus has been on risk appetite frameworks and non-financial risks such as climate, conduct, and reputational risks. Jean-Philippe has led significant projects like designing recovery plans, conducting governance reviews, and training over 600 bankers. He is also a frequent speaker and represents PwC at Luxembourg’s Banks and Bankers’ Association Banking Supervision Committee.