Risk profile

Category: Capital Relief Trades ABS

Previous Story       Next Story

Basel 4 impact to vary based on business model

The EBA last month published its advice on the implementation of Basel 4 in the EU, with its impact assessment suggesting that the full implementation of the new framework under conservative assumptions will increase the minimum capital requirement (MRC) by 24.4% on average. Although the resulting capital impact is highly dependent on the strategy of each bank, it is expected to affect the risk transfer market in a number of ways.

Already registered?

Not yet registered? Join today to access SCI Content.