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Basel 3.1 (Basel IV)

The latest round of Basel reforms, often called Basel IV or the endgame, that revises how risk weighted assets are calculated.

Basel 3.1, widely nicknamed Basel IV, finalises the post crisis reforms. It overhauls the standardised and internal model approaches and introduces an output floor that limits how far internal models can reduce capital.

The aim is more consistent, comparable risk weighted assets across banks. Regulators are phasing it in on their own timetables.

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