Basel IV Is the Buzzword as Europe’s Big Banks Brace for Costs
August 6, 2015
“Basel IV is coming.”
Laurent Mignon, chief executive officer of Natixis SA, sounded that alarm on July 31, referring to the mass of regulatory work in the pipeline at the Basel Committee on Banking Supervision. The issue was raised on at least a dozen other European banks’ earnings calls in recent weeks.
The coming changes — primarily implementation and revisions of existing rules — will increase the risk attributed to some assets, a key component in calculating capital requirements, the banks said. While most didn’t quantify the impact, Chief Financial Officer Marcus Schenck said Deutsche Bank AG’s risk-weighted assets will swell by about 100 billion euros ($109 billion) through 2019.
The full article is available here: http://www.bloomberg.com/news/articles/2015-08-06/basel-iv-is-the-buzzword-as-europe-s-big-banks-brace-for-costs