{"id":565588,"date":"2021-04-18T13:25:36","date_gmt":"2021-04-18T13:25:36","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/18\/one-basel-two-basel-three-basel-four\/"},"modified":"2021-04-18T13:25:36","modified_gmt":"2021-04-18T13:25:36","slug":"one-basel-two-basel-three-basel-four","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/18\/one-basel-two-basel-three-basel-four\/","title":{"rendered":"One Basel, two Basel, three Basel, four..."},"content":{"rendered":"

<\/a> Enterprise Explains: \u201cBasel IV\u201d requirements.<\/strong> Earlier this year<\/a>, the Central Bank of Egypt issued a circular to banks instructing them to comply with updated Basel III requirements on managing operational risks.<\/p>\n

Wait, what? There\u2019s a new Basel?<\/strong> Not exactly. <\/strong>The so-called Basel IV requirements are actually more of an addendum to Basel III than they are a whole new framework. The changes were finalized in December 2017 and were initially expected to be implemented globally by January 2022, but the Basel Committee\u2019s oversight body decided last year<\/a> to push the deadline by one year \u201cto provide additional operational capacity for banks and supervisors to respond to the immediate financial stability priorities\u201d during the pandemic.<\/p>\n

Refresher:<\/strong> In a nutshell, the Basel frameworks \u2014 of which there are three \u2014 are an international regulatory framework to standardize how banks across the world should manage credit risk and market risk. The regulations are designed to ensure that financial institutions have enough capital on account to meet financial obligations and absorb unexpected losses. Read more on the details of each iteration of the regulations in our previous explainer, here<\/a>.<\/p>\n

What do these regulations entail?<\/strong> The updates<\/a> entail five main adjustments:<\/p>\n