Featured Product

    BCBS Reports to G20 Leaders on Implementation of Basel III Reforms

    November 23, 2018

    BCBS published a report updating the G20 Leaders on progress and challenges in the implementation of Basel III regulatory reforms. This report covers progress made since July 2017, when the Basel Committee last reported to the G20. The report summarizes steps taken by the 27 Basel Committee member jurisdictions to adopt the Basel III standards. The report also assesses the progress of banks toward bolstering their capital and liquidity positions, reviews the consistency of implementation in assessed jurisdictions, and presents the implementation work plan of BCBS.

    The report highlights that further progress has been made since last year in implementing the Basel III standards in a full, timely, and consistent manner. In addition, banks have continued to build capital and liquidity buffers while reducing their leverage. The Basel III standards for capital, liquidity and global systemically important banks (G-SIBs) have generally been transposed into domestic regulations within the time frame set by the Basel Committee. The key components, including the risk-based capital standards and the liquidity coverage ratio (LCR), are enforced by all member jurisdictions. Additionally, member jurisdictions continue their efforts to adopt other Basel III standards, including those on margin requirements for non-centrally cleared derivatives, the net stable funding ratio (NSFR), the leverage ratio, revised securitization framework, standardized approach for measuring counterparty credit risk exposures (SA-CCR), capital requirements for bank exposures to central counterparties (CCPs), and revised Pillar 3 disclosure requirements.

    However, challenges remain, particularly regarding the timely regulatory adoption of these standards. While some member jurisdictions have implemented the standards based on the agreed timelines, others have faced delays so that, in many jurisdictions, rules have yet to be finalized or put into effect. Further, some jurisdictions have reported that their implementation of certain standards has been or will be delayed. This is notably the case for the NSFR, with only 10 member jurisdictions having final rules in force. Consistent with last year’s report, limited progress has been also observed in the implementation of capital requirements for equity investments in funds. A considerable number of Basel standards remain due to be transposed into domestic regulations over the next few years, including the requirements for total loss-absorbing capacity (TLAC) holdings and disclosure, the supervisory framework for measuring and controlling large exposures, and the final Basel III reforms, which were issued in December 2017. 

    The Committee urges member jurisdictions to complete the implementation of standards whose implementation date has passed and to start the process of transposing the final Basel III reforms into their domestic (national or regional) banking regulations. To maximize the benefits of these reforms, the Basel Committee will continue to closely monitor the implementation and impact of its standards and report to the G20 on progress. This is the Basel Committee's ninth report that summarizes outcomes of the Regulatory Consistency Assessment Program (RCAP) of BCBS. 

     

    Related Links

    Keywords: International, Banking, Basel III, RCAP, G20, Regulatory Reforms, BCBS

    Featured Experts
    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153