CRR3 & Basel IV
With the Basel IV / CRR3 framework now fully in force, as institutions transition into this new regulatory environment, it is critical for banks to move beyond preliminary gap assessments and focus on the ongoing alignment of their systems, data, and processes with the new requirements. Effective implementation and continuous compliance with CRR III/CRD VI will be key to maintaining capital efficiency and regulatory readiness in this new era.
Finalyse continues to support financial institutions in ensuring robust, compliant, and efficient regulatory practices. Our services are tailored to help banks navigate the complexities of the new regulatory landscape while optimizing their risk and capital strategies.
How does Finalyse address your challenges?
Comprehensive Gap Analysis and Continuous Improvement
Ongoing Standards Calibration: We ensure your frameworks stay aligned with evolving calculation standards and regulatory expectations.
Critical Data Element Review: Regular validation and refinement of critical data elements (CDEs) used in risk and capital models.
Post-Implementation Shortcomings Review: Identification and resolution of residual gaps and inefficiencies in current Basel IV/CRR3 implementations.
Business Requirements Documentation
Standardized Compliance Documentation: Using our proprietary tools and regulatory templates, we structure clear, audit-ready business requirements that reflect the implemented regulatory standards.
Traceability & Governance: Maintain regulatory alignment and internal traceability through structured and well-documented implementation frameworks.
Impact Analysis and RWA optimization
Portfolio Impact Monitoring: Analysis of capital impacts across exposure classes and business lines, allowing for proactive risk management and strategic planning.
RWA optimization attention: Dedicated focus on RWA calculation aspects for RWA optimization (CRR3 aftercare)
Seamless System Integration
Reporting System Integration: We support integration of Basel IV/CRR3 outputs into existing reporting infrastructures, ensuring consistency across systems and facilitating regulatory reporting.
Tool-Based Automation: Leverage Finalyse's standard integration tools to streamline data flow and reporting processes.
Strategic Business Advisory
Scenario Simulation and Strategic Planning: Our experts assist in simulating capital impacts under various regulatory scenarios, helping shape optimal strategic responses.
Exposure Class Distribution Analysis: Advanced analytics on output floor impacts across different exposure classes and risk types.
Output Floor Benchmarking and Standardized Approach Calculations
End-to-End Standardized Approach Calculations: Using our proven methodology, we perform full-portfolio SA calculations to meet benchmarking requirements under CRR3.
Output Floor Monitoring Tools: Implement tools and dashboards to track and manage output floor metrics in real time, ensuring transparency and compliance.
Key Features
Finalyse has demonstrated proven success in several projects across different geographies for Basel IV and CRR 3 preparedness. The areas covered in these assignments include:
- Ongoing Gap Monitoring: Regular reviews to validate compliance and critical data elements post-implementation.
- Capital & RWA Impact Tracking: Embedded tools to assess ongoing RWA and capital impacts under finalized rules.
- RWA Calculator Maintenance: Support for live operations of vendor models (e.g., SAS Solution for Regulatory Capital, Moody’s RiskAuthority (RAY), Oracle OFSAA, etc.) aligned to CRR3.
- CRM allocation and RWA optimization: Implementation of CRM guidelines and application of CRR3 relief factors (e.g., SME Supporting Factor, Infrastructure Supporting Factor).
- Regulatory Reporting Automation: Seamless integration with reporting data marts using standard templates for COREP and other regulatory/internal reporting
Abishek Chopra is a seasoned Risk Management professional with over 12 years of experience in multiple areas of credit risk, especially on CRR and Basel guidelines. He has expertise in addressing complex regulatory topics such as credit risk mitigation for RWA optimization of different asset classes, Basel IV application of Whole Loan/Split Loan approaches for mortgages, SA-CCR and Securitisation.
Nathan Desmidt is a Managing Consultant with more than 8 years of experience in risk management. Nathan’s area of expertise lies within regulatory capital calculations, specifically in the context of CRR2/CRD5 and upcoming Basel 4/CRR3 regulations. Recently Nathan has been involved in the implementation of a new RWA calculator at a large financial institution aiming to enable Basel 4 compliancy, focusing on validation of RWA calculations in light of the new framework’s developments.
Maël Kerbaul is a Senior Consultant with over 15 years of experience in the banking and financial industry, especially in risk management. His main area of expertise lies in the credit risk management and regulatory capital calculation. He has developed a broad knowledge of Basel IV/CRR3 while he played a major role in the impact assessment of this new regulation at a large financial institution in Belgium. Maël has also a wide experience in data analysis for credit risk and has a good command of SAS EG and SQL.
