Archive of Journal - Financing
Financing – scientific magazine for economy
ISSUE 2017, No. 1, Article 2, Year of publication: 8, March, 2017
Three decades of Basel standards: from the Basel I to the Basel IV
*Sberbank Europe, Wien
Basel standards were developed as reactive response of regulators do the global economic developments. Currently there are in development new rules which according to the experts will make the core of the new Basel 4 standard. Reasons for introduction of the new standard are documented in findings from published revision of the pillar 3 of the current standard, mainly in domain of transparency of current practices, especially related to the comparison of capital requirements between similar institutions using advanced models (IRB models). Main goals of the new standard will be improving transparency and comparability of risk management and risk quantifica-tion practices, advancement of risk sensitivity of standardized approaches for capital adequacy estimation, redefinition of the role of the advanced models, introduction of capital floors based on comparison of capital adequacy results produced by usage of standardized and advanced approaches and introduction of rules for treatment of new risks.
Keywords: Basel, Basel 4, IRB.