Is it Time for Basel IV and What Are the Effects on Banks in Bulgaria?

Emilia Milanova
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Emilia Milanova: University of National and World Economy, Sofia, Bulgaria

Ikonomiceski i Sotsialni Alternativi, 2019, issue 1, 5-19

Abstract: The article discusses the main objectives of the revised Reform Program – Basel IV. Empha­sis is placed on the elements of Basel IV – a revised standardized approach to credit risk, a new approach to credit risk based on internal rat­ings, revisions to the credit valuation adjustment (CVA) framework, revisions to the measurement of the leverage ratio and a leverage ratio buffer for global systemically important banks (G-SIBs), a revised standardized approach to operational risk, revised capital from first pillar. There is also a program for improving capital management with two basis points: a capital management strategy and structural factors to ensure a sustainable strategy. It also discusses the strategic challeng­es faced by banks as a result of the introduction of IFRS 9 “Financial Instruments” as a medium-term objective for their management.

Keywords: credit risk; operational risk; leverage ratio; CVA risk; revised capital from first pillar; IFRS 9 (search for similar items in EconPapers)
JEL-codes: G21 M48 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:nwe:iisabg:y:2019:i:1:p:5-19

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