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

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582