RBI Circular Amends Transitional Arrangements for CCB Under Basel III
RBI issued a circular that amends the transitional arrangements for capital conservation buffer (CCB) under the Basel III capital regulations.
Referring to paragraph 4.5 “Transitional Arrangements,” paragraph 15.2.2 of Part D “Capital Conservation Buffer Framework, and paragraph 2.3 of Annex 16 of the Master Circular dated July 01, 2015 on Basel iii capital regulations, RBI has decided to defer the implementation of the last tranche of 0.625% of capital conservation buffer (CCB) from March 31, 2019 to March 31, 2020. Accordingly, minimum capital conservation ratios in paragraph 15.2.2 of Part D as applicable from March 31, 2018 will also apply from March 31, 2019 till the CCB attains the level of 2.5% on March 31, 2020. Furthermore, the pre-specified trigger for loss absorption through conversion/write-down of additional tier 1 instruments (Perpetual Non-Cumulative Preference Shares and Perpetual Debt Instruments) shall remain at 5.5% of the risk-weighted assets (RWAs) and will rise to 6.125% of RWAs on March 31, 2020.
Keywords: Asia Pacific, India, Banking, Basel III, Transitional Arrangements, CCB, RWA, Capital Requirements, Additional Tier 1, RBI
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
EBA Report Examines the Consistency of Internal Model OutcomesRelated Articles
HKMA on Fintech Adoption and Innovation by Banks in Hong Kong
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS on Impact of Increasing Use of Cloud Technology on Cyber Risk
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.
ECB Consults on Guide for Managing Climate and Environmental Risks
ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.
ECB Issues Opinion on Revisions to CRR in Response to COVID Crisis
ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.
EBA Assesses Interlinkages Between Recovery and Resolution Planning
EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).
SRB Publishes Final MREL Policy Under the Banking Package
SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.
US Agencies Amend Interim Final Rule on Transition Period for CECL
US Agencies (FDIC, FED, and OCC) published a final rule that makes technical changes to the March 31, 2020 interim final rule that provides a five-year transition period for the impact of the current expected credit loss (CECL) methodology on regulatory capital.
ECB Releases Results of March Survey on Credit Terms and Conditions
ECB published results of the March 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets.
FINMA Adjusts Deadlines for COVID-19 Relief Measures for Banks
FINMA published guidance (06/2020) on extending or discontinuing various exemptions that were granted due to the COVID-19 crisis.
SRB Consults on Standardized Data Set for Bank Valuation in Resolution
SRB launched a consultation on the minimum data needed for valuation of a bank in resolution.
