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By Nadine KHODR, Senior Manager – Risk Management Alma DIZDAREVIC
Manager – Risk Management, HACA Partners Consulting France S.à r.l.
Basel IV represents a significant overhaul of banking regulation, bringing with it new requirements designed to improve financial stability and risk management in the global banking sector. Among these changes, the introduction of the Output Floor (OF) is a critical element that aims to address the variability of Risk-Weighted Assets (RWAs) calculated using Internal Ratings-Based (IRB).
This article examines the far-reaching implications of the OF, focusing on its impact on banks using the IRB approach for capital adequacy. It delves into whether these banks will retain their IRB or...
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