After the overwhelming global success of the first edition of our Basel IV Book we are proud to announce that the extensively enhanced second edition with additional details, examples and case studies was published on the 8th of August.
This new edition, only 1.5 years after the publication of the first edition, includes now all publications of the Basel Committee until March 2018 and covers all new methods for the calculation of RWA for credit, market and operational risk. The book also covers topics indirectly related to RWA like large exposures, step-in risk and Pillar III disclosures. The best Regulatory and Risk Management experts of the global PwC network worked together on this book to provide you and our clients with a detailed overview on the finalisation of Basel III, or how the banking industry calls it “Basel IV”.
This book aims to explain that banks and financial markets are facing a new regulatory framework called „Basel IV“ and not just a fine adjustment of the existing Basel III regulations.
The second edition covers all new approaches for the calculation of RWA:
- the standardised approach (CR-SA) and the IRB approach for credit risk,
- the new standardised approach for counterparty credit risk (SA-CCR),
- both the standardised approach and internal models approach from the „fundamental review of the trading book“ (SBA and IMA)
- the basic approach (BA-CVA) and standardised approach (SA-CVA) for the CVA risk,
- all new approaches (SEC-IRBA, SEC-ERBA, SEC-SA, IAA) for securitisations (incl. STS),
- the approaches for the calculation of RWA for equity positions in investment funds (LTA, MBA, FBA)
- the new standardised approach for operational risk (SA-OpRisk)
Because of the strong relation to the Pillar I requirements, the second edition covers the topics of interest rate risk in the banking book (IRRBB), large exposures and TLAC again. Additionally, the book contains a detailed description of the Pillar III disclosure requirements.
With the aid of a high-profile team of experts from countries all over the globe, the complexity of the topic is reduced, and important hands-on support is offered.
All the new and finalised regulatory requirements reflected in this second edition and the much higher level of detail make it worthwhile to read, even if you already know the first edition.
You can order the book via the following link
A German edition of our Basel IV Book will be available soon.