Revised Capital Requirements Regulation Rules: CRR2 Reforms And Beyond In The Age Of COVID-19

“Revised Capital Requirements Regulation Rules: CRR2 Reforms And Beyond In The Age Of COVID-19” is a paper that outlines upcoming changes to regulations, CRR2 reforms, and the resulting challenges faced by financial institutions. AxiomSL offers insight into best practices for identifying and resolving the challenges of CRR2 reforms, and creating efficiencies when addressing the ever-changing regulatory landscape, particularly in the age of COVID-19 and a difficult environment.

The expansion of Basel III and accompanying new calculation rules mean that financial institutions are feeling the pressures of accommodating changes occurring in both the near and medium term. In addition, the COVID-19 pandemic has left an indelible mark on organizations around the world that were already grappling with approaching Basel deadlines. In response to the needs of firms currently focusing on addressing the COVID-19 crisis, the Basel Committee’s oversight body, the Group of Governors and Heads of Supervision (GHOS), has deferred the implementation dates to 2023 for outstanding Basel standards. The move acknowledges the severity of the coronavirus-driven global crisis and gives financial institutions a reprieve. This reprieve represents a golden opportunity for financial institutions to explore strategically addressing CRR2 reforms and Basel expansion, and implementing resilient best practices.

It is now more critical than ever for firms to utilize a holistic and technology-driven approach when maximizing this strategic opportunity. The new Basel-driven requirements involve more than a simple finalization of Basel III reforms, and the rules are so comprehensive that they have been informally dubbed “Basel IV”. Financial institutions must keep current with this new scenario and prepare for its ramifications amid quickly evolving global regulations. The impacts of COVID-19 on individual organizations will be determined by their portfolios and business models. And preparing for the COVID-19 adjusted new deadlines in 2023 will require thoughtful planning to assess the impact of the crisis, implement new data management and reporting processes, streamline existing ones, and make informed business decisions.

In this paper, AxiomSL discusses the challenges of CRR2 reforms and Basel expansion, and how best to strategically address them:

  • Current and Future Requirements: Introduces the scope of changes included in Basel III reforms, now referred to as “Basel IV”, for both capital and liquidity
  • Basel IV Highlights By Specific Requirement: Takes a closer look at the expansion of rules and calculations, including CRR2 reforms, and what these mean for financial institutions
  • Exploring The Issues: Explores key questions and the accompanying challenges facing organizations
  • Ahead Of The Learning Curve — AxiomSL’s Basel IV and CRR2-Driven Capabilities: Offers financial institutions best practices to consider when addressing challenges in the immediate and medium term
  • Despite Uncertain Times, A Confident Journey: Discusses concluding thoughts on future-proofing processes and creating organization-wide resilience, particularly in times of crisis.

The ideas discussed in this paper can help financial institutions ensure that they are not only meeting Basel requirements, but are also optimizing resources and staying abreast of Basel-driven regulatory developments globally in order to be fully compliant. AxiomSL’s cost-effective, flexible, strategic platform, ControllerView®, delivers the processes, calculations, and controls that empower financial institutions to improve risk management and data governance and strengthen transparency and disclosures. The platform and AxiomSL’s array of bespoke solutions enable clients to comply with Basel regulatory requirements. AxiomSL continually maintains and evolves its solutions to stay up-to-date on Basel-driven regulatory developments globally.

In a time of COVID-19 disruptions and rapid regulatory change, it is even more important than ever for financial institutions to have complete transparency into their data and calculations and be prepared to manage change. With AxiomSL’s proven technology, organizations can satisfy regulatory requirements and deliver the data integrity and auditability that regulators demand under the umbrellas of Basel changes and CRR2 reforms.

Gain insight into best practices for addressing CRR2 reforms and how AxiomSL’s technology-driven approach can help strategically address FRTB, SA-CCR, Leverage Ratio, Large Exposure, NSFR, LCR, LMT and Asset Encumbrance. Request our full whitepaper:


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