Featured Product

    BCBS Report Examines Progress on Adoption of Basel III Framework

    July 06, 2020

    BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions. The report sets out the adoption status of the "to-date" agreed Basel III standards for each member jurisdiction as of the end of May 2020. This includes the Basel III post-crisis reforms published by BCBS in December 2017 and the finalized minimum capital requirements for market risk published in January 2019. Since the previous report in October 2019, member jurisdictions have made further progress in implementing standards whose deadlines have passed, despite financial stability priorities related to the COVID-19 pandemic. Progress has also been made in implementing rules that are yet to come into effect.

    The progress report reveals that, as of the end of May 2020, all member jurisdictions have risk-based capital rules, liquidity coverage ratio regulations, and capital conservation buffers in force. Twenty-six member jurisdictions have final rules in force for the countercyclical capital buffer and the leverage ratio based on the existing (2014) exposure definition. Fourteen member jurisdictions have issued draft or final rules for the leverage ratio based on the revised (2017) exposure definition. Twenty-five member jurisdictions have final rules in force for the domestic systemically important bank, or D-SIB, requirements. With regard to the global systemically important bank (G-SIB) requirements, all members that are home jurisdictions to G-SIBs have final rules in force. The report also reveals that:

    • Twenty-one member jurisdictions have issued final rules for the revised securitization framework.
    • Nineteen member jurisdictions have final rules in place for capital requirements for equity investments in funds.
    • All of the twenty-seven member jurisdictions have issued draft or final rules for the net stable funding ratio.
    • Twenty-one member jurisdictions have issued final rules for the capital requirements for bank exposures to central counterparties and standard on interest rate risk in the banking book.
    • Twenty-three member jurisdictions have issued final rules for the standardized approach for measuring counterparty credit risk exposures.
    • Twenty-two and twenty-six member jurisdictions have issued the draft or final rules for the requirements for total loss-absorbing capacity holdings and for the large exposure framework, respectively.
    • One member jurisdiction has final rules in place for the revised standardized approach for credit risk
    • Two member jurisdictions have final rules in places for the revised internal ratings-based approach for credit risk and the revised operational risk framework.
    • Nine member jurisdictions have issued final rules for the revised minimum requirements for market risk.

    While BCBS welcomes the overall progress made on the implementation of standards by member jurisdictions, it reaffirms its expectation of full, timely, and consistent implementation of the Basel III post-crisis reforms and will continue to closely monitor the implementation of these reforms. Additionally, by mid-2022, BCBS plans to complete the review of implementation of the net stable funding ratio and the large exposures framework for all member jurisdictions.

     

    Related Links

    Keywords: International, Banking, Basel, Progress Report, IRRBB, Large Exposures, Credit Risk, Market Risk, Operational Risk, Regulatory Capital, BCBS

    Featured Experts
    Related Articles
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    EIOPA Consults on Reporting and Disclosures Under Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7293