General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
January 29, 2018

The BCBS Chairman Stefan Ingves spoke about implementation of Basel III during his keynote address at the Institute for Law and Finance conference in Frankfurt. He highlighted that "finalizing Basel III was an important milestone." However, work remains to implement Basel III nationally in a full, timely, and consistent manner; evaluate its effectiveness in reducing the excessive variability of risk-weighted assets (RWAs); and continue to monitor and assess the emerging risks. To this end, BCBS will continue to exercise its mandate to strengthen the regulation, supervision, and practices of banks worldwide.

He summarized the Basel III reforms from 2010 to 2017, also elaborating on the challenges faced during this process and the goals of these reforms. He then elaborated on the goal to reduce RWA variability and the ways to assess whether this goal has been accomplished. To that end, the Committee has initiated a rigorous evaluation of its post-crisis reforms, said Mr. Ingves. "As the reforms will only start to be implemented from 2022 onward, this exercise will take several years. But I believe that the Committee should remain open to the possibility of considering whether additional measures, or revisions to existing measures, are warranted to reduce excessive RWA variability." He said: "I will not prejudge the outcomes of these evaluations, but let me make three observations. First, the purpose of these evaluations is not to reopen already agreed standards. Second, the Basel Committee is a member-led and consensus-based body. Accordingly, the Basel III reforms are a compromise that reflects the different views of its members. Third, as the Basel reforms are minimum standards, jurisdictions are welcome to apply more conservative requirements should they wish to do so. This could include faster transitional arrangements and/or more conservative steady-state requirements." 

With regard to the emerging risks, the Committee is reviewing its existing cyber-risk measures and will consider whether additional measures are needed to enhance operational resilience of banks, said Mr. Ingves. He emphasized that the Committee's response to the global financial crisis included much more than just regulation; it also encompassed a range of measures to support strong supervision. These include principles and guidance on corporate governance, risk data aggregation, the prudential treatment of assets, the treatment of weak banks, and an updated set of core principles for effective banking supervision. In future, the Committee also plans to step up its efforts to promote improvements in banking supervision practices and principles.

 

Related Link: Speech

Keywords: International, Banking, Basel III, Risk Weighted Assets, Cyber Risk, Banking Supervision, BCBS

Related Insights
News

EBA Finalizes Guidelines on the STS Criteria in Securitization

EBA published the final guidelines that provide a harmonized interpretation of the criteria for a securitization to be eligible as simple, transparent, and standardized (STS) on a cross-sectoral basis throughout EU.

December 12, 2018 WebPage Regulatory News
News

OSFI Sets Domestic Stability Buffer for D-SIBs at 1.75%

OSFI set the level for the Domestic Stability Buffer at 1.75% of total risk-weighted assets, as calculated under the Capital Adequacy Requirements (CAR) Guideline.

December 12, 2018 WebPage Regulatory News
News

FSI Publishes Paper on Proportionality in Insurance Solvency Rules

FSI published a paper on proportionality in the application of insurance solvency requirements.

December 11, 2018 WebPage Regulatory News
News

BCBS Updates Framework for Pillar 3 Disclosure Requirements

BCBS published the updated framework for Pillar 3 disclosure requirements.

December 11, 2018 WebPage Regulatory News
News

EBA Issues Revised List of Validation Rules for Reporting

EBA revised the list of validation rules in its implementing technical standards on supervisory reporting.

December 11, 2018 WebPage Regulatory News
News

IMF Reports Assess the Stability of Financial System in Brazil

IMF published a report on the results of the Financial System Stability Assessment (FSSA) on Brazil.

December 11, 2018 WebPage Regulatory News
News

FED Governor Examines Pros of Imposing Capital Buffers on Large Banks

At the Peterson Institute for International Economics in Washington D.C., the FED Governor Lael Brainard summarized the financial stability outlook, highlighted areas where financial imbalances seem to be building, and touched on the related policy implications.

December 07, 2018 WebPage Regulatory News
News

US Agencies Propose Rule on Appraisals for Real Estate Transactions

US Agencies (FDIC, FED, and OCC) proposed a rule to increase the threshold level at or below which appraisals would not be required for the residential real estate transactions from USD 250,000 to USD 400,000. Comments will be accepted for 60 days from publication in the Federal Register.

December 07, 2018 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for December 2018

This week one answer was published as part of the Single Rulebook Questions and Answers (Q&A).

December 07, 2018 WebPage Regulatory News
News

FED Updates Reporting Form and Instructions for FR Y-14Q

FED published the updated reporting form FR Y-14Q for Capital Assessment and Stress Testing, along with the associated instructions.

December 06, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2325