December 07, 2017

BCBS completed its review of the regulatory treatment of sovereign exposures, without changes to the current rules. However, the Basel Committee has published a discussion paper on the regulatory treatment of sovereign exposures, the comment period for which ends on March 09, 2018.

BCBS is of the view that the issues raised by its review and the potential ideas outlined in the discussion paper are important and could benefit from a broader discussion. However, the Committee has not yet reached a consensus on making any changes to the regulatory treatment of sovereign exposures and has, therefore, decided not to consult on the ideas presented in the discussion paper. The views of interested stakeholders will nevertheless be useful in informing the Committee's longer-term thinking on this issue. The Basel Committee's oversight body, the Group of Central Bank Governors and Heads of Supervision (GHOS), mandated the Committee to review the regulatory treatment of sovereign risk in January 2015.  This when BCBS had set up a high-level Task Force on Sovereign Exposures to review the regulatory treatment of sovereign exposures and recommend potential policy options. The Task Force's report analyzed issues concerning the regulatory treatment of sovereign exposures in the Basel framework. This discussion paper is derived from the report of the Task Force.

 

Related Link: Notification

 

Comment Due Date: March 09, 2018

Keywords: International, Banking, Basel III, Sovereign Exposures, BCBS