Basel IV: How Banking Regulation Will Change in 2026 and Why You Can't Do Without the Course 'Banking Regulation — Basel III/IV and Prudential Supervision'

Introduction

On January 1, 2025, amendments to the Capital Requirements Regulation (CRR3) came into force in the European Union, implementing the final standards of the Basel Committee on Banking Supervision (BCBS), known as Basel IV. These changes affect the calculation of risk-weighted assets (RWA), capital requirements, liquidity, and reporting. For banking professionals, risk managers, auditors, and consultants, this means the need to quickly master new approaches: output floor, FRTB, SMA for operational risk, CVA. Errors in calculations can cost a bank millions and lead to regulatory sanctions.

That is why we created the course 'Banking Regulation — Basel III/IV and Prudential Supervision' on the asibiont.com platform. This is a practice-oriented course that will help you not only understand the theory but also learn to apply the new rules to real data using Excel and Python. In this article, I will tell you what you will learn, how the training is structured, and why the AI approach makes it especially effective.

What is Basel IV and why it matters right now

Basel III Finalisation (often called Basel IV) is a set of standards adopted by the BCBS in 2017 and entering into force gradually from 2023 to 2028. Key innovations:

• Output floor: limits the reduction of RWA when using internal models to 72.5% of the standardized approach calculation. This affects capital adequacy, especially for banks with advanced IRB models.
• FRTB (Fundamental Review of the Trading Book): revises approaches to market risk, introduces a risk-sensitive standardized method and P&L attribution tests for internal models.
• SMA (Standardised Measurement Approach) for operational risk: replaces all existing approaches with a single formula based on the business indicator and historical losses.
• CVA Risk: new requirements for assessing counterparty credit risk on derivative instruments.
• Leverage Ratio and Liquidity (LCR, NSFR): tightening of standards.

According to BCBS estimates, full implementation of Basel IV could increase the weighted average RWA of large banks by 10-20% (source: BCBS Basel III Monitoring Report, 2023). For banks, this means increased capital needs and possible higher lending costs. Specialists who can correctly calculate RWA and optimize capital are becoming extremely in demand.

What the course teaches: from Pillar 1 to stress testing

The course covers the full spectrum of prudential regulation:

• Pillar 1: minimum capital requirements (CET1, Tier 1, Total Capital), calculation of RWA for credit risk (standardized approach and IRB), market risk (FRTB), operational risk (SMA), CVA.
• Output Floor: calculation methodology and impact on the business model.
• Leverage Ratio and Liquidity: LCR, NSFR — how to calculate and interpret.
• Pillar 2: ICAAP/ILAAP, SREP, stress testing.
• Recovery & Resolution: MREL/TLAC, recovery plans.
• Regulatory requirements EU CRR/CRD VI.

You will learn to calculate RWA in Excel and Python using real simplified portfolio examples. For example, we will analyze a case of a bank with a mortgage portfolio and corporate loans, show how the application of the output floor changes capital adequacy, and how this affects loan pricing.

Who will benefit from the course

The course is intended for:

• Bank employees: risk managers, financial analysts, reporting specialists, internal auditors.
• Consultants and auditors working with the banking sector.
• Students of finance specialties planning a career in banking regulation.
• Employees of regulators who want to systematize their knowledge.

If you are already familiar with the basics of banking, the course will help you delve into the details. If you are a beginner, we will explain complex terms in simple language.

How training on asibiont.com is structured

The asibiont.com platform uses artificial intelligence to generate personalized lessons. This is not just a set of articles — the neural network analyzes your current level, goals, and progress, and then forms an individual learning trajectory. All materials are presented in text format, which allows you to study them at a convenient pace and return to difficult parts. Access to lessons is open 24/7.

Here is how it works:

1. You specify your experience and goal (for example, 'I want to learn how to calculate RWA for mortgages').
2. The AI generates a sequence of lessons, starting with basic concepts and gradually moving to complex topics.
3. Each lesson contains theoretical material, examples, and practical tasks. You can request additional explanations or examples — the neural network adapts the content to your request.
4. After completing the tasks, the system analyzes mistakes and suggests repeating or deepening the topic.

This approach allows you to avoid 'fluff' and focus on what is truly important for your work.

Why AI learning is modern and effective

Traditional courses often suffer from universality: all students receive the same material, regardless of their level. As a result, beginners drown in terminology, and experienced learners get bored. AI generation solves this problem:

• Personalization: the program adapts to you. If you already know what credit risk is but are not familiar with FRTB, the course will start right with FRTB.
• Adaptive complexity: complex topics are explained in simple language, with many examples. If something is unclear, you can request an alternative explanation.
• Practical orientation: tasks are based on real scenarios. You don't just read, you do.
• Time saving: you don't spend hours on what you already know.
• Accessibility: the text format is convenient for studying anywhere and from any device.

According to an MIT study (2020), personalized learning using AI improves academic performance by 30-40% compared to traditional methods. Although this study is not specific to banking regulation, the principle remains the same: adaptability improves understanding.

Case study: how the output floor changes everything

Let's consider a simplified case. A bank has a corporate loan portfolio of 1 billion euros. Using the internal ratings-based model (IRB), RWA is 600 million euros. However, the standardized approach gives RWA of 800 million. The output floor sets the minimum RWA at 72.5% of the standardized, that is, 580 million. In this case, the IRB calculation (600 million) is above the threshold, so the bank uses it. But if the IRB gave 500 million, then 580 million would have to be used, which would increase the capital requirement.

In the course, we analyze similar examples in Excel, build sensitivity graphs, and discuss how banks can optimize portfolios under the new conditions.

Sources and further reading

• Basel Committee on Banking Supervision. Basel III: Finalising post-crisis reforms (2017).
• Regulation (EU) 2024/1623 (CRR3).
• EBA Guidelines on ICAAP and ILAAP.
• BCBS Basel III Monitoring Report (2023).

These documents form the basis of the course, and we regularly update the materials to reflect the latest changes.

Start learning today

The world of banking regulation is changing rapidly. To remain a sought-after specialist, you need to constantly learn. The course 'Banking Regulation — Basel III/IV and Prudential Supervision' on asibiont.com gives you not just knowledge, but practical skills that can be applied at work as early as tomorrow. Thanks to AI personalization, you learn at a convenient pace and get exactly the knowledge you need.

Join the course via the link: Banking Regulation — Basel III/IV and Prudential Supervision. Start understanding Basel IV today!