High-level Summary of Basel III Reforms (FRM Part 2 – Book 3 – Chapter 21)

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After completing this reading, you should be able to:
Explain the motivations for revising the Basel III framework and the goals and impacts of the December 2017 reforms to the Basel III framework.
Summarize the December 2017 revisions to the Basel III framework in the following areas:
The standardized approach to credit risk
The internal ratings-based (IRB) approaches for credit risk
The CVA risk framework
The operational risk framework
The leverage ratio framework
Describe the revised output floor introduced as part of the Basel III reforms and approaches to be used when calculating the output floor.