Financial Services Foresight

Our latest thinking addressing the challenges and opportunities in the financial services industry.

December 2016

Fourth time around? European banks confront "Basel IV"

With the next Basel Committee meeting just a few days ahead and yesterday's publication of the CRR proposals, the recalibration of Basel III - called "Basel IV" in the industry - is taking another step towards becoming reality. Our analyses suggest that according to current proposals, risk-weighted assets of Europe's banks would increase by as much as 40-65%. Yet even if the requirements are softened to an overall effect of 10-20%, they will not be easily absorbed. Banks will need to find new strategic answers - and quickly, given the short implementation timeframe.

Basel IV will have huge implications

Considering Basel's huge implications, PwC and Strategy& have built a competence team that closely monitors and analyzes recent developments from regulatory and strategic perspectives. In our latest publication, "Fourth time around?" we provide insights into the expected capital effects of Basel IV. Join us and learn more about the strategic implications of Basel IV in a live webcast that we will host in January 2017 and reach out to us if you wish to understand what Basel IV may mean for your strategy.

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As PSD2 promotes open banking and open data, banks will need new business models and services in this new competitive environment. Offering third-party module or data sourcing, becoming a banking module or banking data provider, or creating a high-quality platform are some of the options.
Register for the Basel IV live webcast
Get an in-depth analysis of our study and discuss the strategic impacts of Basel IV
Browse our Basel IV website containing more information on publications and events.

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