BCBS Report Examines Progress on Adoption of Basel Framework

As of the end of September 2019, all member jurisdictions have risk-based capital rules, liquidity coverage ratio (LCR) regulations, and capital conservation buffers in force. Twenty-six member jurisdictions also have final rules in force for the countercyclical capital buffer. With regard to the global systemically important bank (G-SIB) requirements published in 2013, all members that are home jurisdictions to G-SIBs have final rules in force. Twenty-one member jurisdictions have issued final rules for the revised securitization framework. Other key highlights of the report include:

• Nineteen jurisdictions have final rules in place for capital requirements for equity investments in funds.
• Ten jurisdictions have issued final rules for revised minimum requirements for market risk either for capital or reporting purposes.
• The leverage ratio based on the existing (2014) exposure definition has been partly or fully implemented in twenty-six member jurisdictions, whereas thirteen jurisdictions have issued draft or final rules for the leverage ratio based on the revised (2017) exposure definitions.
• Twenty-six member jurisdictions have issued draft or final rules for the standardized approach for measuring counterparty credit risk exposures, or SA-CCR.
• Significant progress has been made in implementing the standard on interest rate risk in the banking book and the supervisory framework for measuring and controlling large exposures, with the number of jurisdictions that have issued draft or final rules increasing to twenty-four and twenty-five, respectively. 
• Moreover, twenty-two member jurisdictions have issued draft or final rules for the net stable funding ratio or NSFR. 

While BCBS welcomes the overall progress made on the implementation of standards by member jurisdictions, it urges the members to strive for full, timely, and consistent implementation of Basel III post-crisis reforms and plans to continue monitoring the implementation of these reforms. Additionally, BCBS plans to complete its review of the implementation of the NSFR and the large exposures framework for all member jurisdictions by March 2021.

Related Links

• Press Release
• Progress Report (PDF)
• Implementation of Basel Standards

Keywords: International, Banking, Basel III, Progress Report, NSFR, SA-CCR, IRRBB, Large Exposures, BCBS