The effect of Basel IV on European banks
At the beginning of October, the annual DACT Academy took place and Orchard Finance was present. The DACT Academy is organized by the Dutch Association of Corporate Treasurers (DACT). Our colleagues Luuk Bergman and Eelco van de Lustgraaf presented a masterclass on Basel IV to a group of treasury professionals.
About Basel IV
From January 1st, 2023 onwards, the new Basel IV convention will be applicable. This has immediate consequences for the capital requirements of European banks and therefore the conditions that corporates can agree upon with their banks. The Basel conventions are (banking) supervision agreements, which oversee a series of recommendations on banks and financial institutions.
The purpose of the Basel conventions is to improve the quality of banks, with an emphasis on sufficient capital and monitoring the quality of that specific capital.
During this session Eelco and Luuk firstly discussed the (European) changes of Basel IV compared to Basel III and the impact those changes will have on Dutch (large) banks. Secondly, the possible and expected effects on corporates were presented.
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