But Mayra Rodriguez Valladares, managing principal of MRV Associates, said calling the pending changes Basel IV may be going too far, arguing it’s not on par with the wholesale reconstruction of the international standards in the same way it was between Basel II and Basel III. Still, Valladares said the changes are a major milestone — one that she expects banks will fight strenuously.

“This is the biggest news to come out of the Basel committee, because whatever they propose — whether it’s a floor, whether it’s making changes in formulae, whether it’s demanding that banks be more transparent about how they come up with risk weighted assessments — there will be a big battle, because banks are really going to push back,” Valladares said.

Ready or Not, Here Comes Basel IV, American Banker

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