International regulators are gearing up to make significant changes to capital requirements over the next few years, a shift that some are already referring to as Basel IV. The Financial Stability Board has detailed a slate of likely changes over the next three years, including raising the risk-based capital ratio, revising risk weightings and moving away from model-based assessments as part of a revamp of the capital requirements for operational, market and credit risk. The Basel Committee will likely raise the risk-based capital ratio to 10% from 8%. A key principle of the new guidelines is reducing reliance on internal or external models in favor of tougher capital standards. The overall result would be a shift away from risk-based capital rules and toward simple, hard-line capital ratios.