BaselIIIIV

BaselIIIIV is an informal term used in policy discussions to describe a prospective extension or revision of the Basel III framework governing bank capital, liquidity, and risk management. It is not an officially adopted standard, and as of 2025 the Basel Committee on Banking Supervision had not published a framework titled BaselIIIIV. The term is used in analyses, regulatory debates, and some media coverage to denote potential further tightening of capital requirements, loss-absorbing capacity, and supervisory practices for internationally active banks.

Proposed features commonly associated with BaselIIIIV include higher minimum capital, particularly common equity tier 1, expanded or new capital buffers, and tighter rules around risk-weighted assets. Discussions often consider revisions to internal models, greater reliance on standardized approaches, and the introduction of floors to prevent excessive risk-weighting. Other elements may involve enhanced liquidity standards, strengthened stress testing, and more rigorous cross-border group oversight.

Status and timeline are unclear; any BaselIIIIV package would require agreement among the Basel Committee members and national regulators, followed by national transposition. If pursued, the reforms would likely be phased in over several years, with transitional arrangements to limit abrupt changes in banks' capital and liquidity positions.

Supporters argue BaselIIIIV would bolster financial stability, resilience to shocks, and comparable capital quality across institutions. Critics warn that it could raise compliance costs, disproportionately affect smaller banks, and increase lending frictions, depending on implementation specifics.