Basel Committee Postpones Finalizing ‘Basel IV’

As urged by ABA, the Basel Committee on Banking Supervision today announced it would delay its efforts to finalize a number of new regulatory capital framework reforms. While the committee refers to this process as “final calibration,” ABA and others have been concerned that the changes envisioned amount to “Basel IV,” and would add unnecessary complexity to the existing regulatory framework.

ABA has long raised concerns over the opaque nature of the Basel committee’s rulemaking process, and how additional capital requirements could negatively affect banks of all sizes if implemented in the U.S. Through the International Banking Federation, ABA has urged the Basel committee not to rush the process, especially in an environment of slow global growth and economic uncertainty. For more information, contact ABA’s Hugh Carney.