As a response to COVID-19, the Basel Committee on Banking Supervision (BCBS) has pushed out timelines for the extensive updates planned for Basel III – often referred to as “Basel IV”.
However, the regulation changes are still coming into effect over the next three years despite reprieves. With Basel IV, BCBS has outlined the standardized approach for counterparty credit risk (SA-CCR) with the intention of replacing the previously existing approaches, including the current exposure method (CEM) and the standardized method (SM).
