Featured Product

    BCBS Report Examines Progress on Adoption of Basel Framework

    October 16, 2019

    BCBS published the seventeenth progress report on adoption of Basel regulatory framework. The report sets out the adoption status of Basel III standards for each member jurisdiction as of the end of September 2019. 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. The report highlights that significant progress has been observed in the implementation of the disclosure framework. Moreover, since the previous report in May 2019, member jurisdictions have made further progress in implementing capital requirements for bank exposures to central counterparties, with twenty-four member jurisdictions having issued draft or final rules.

    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

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

    Featured Experts
    Related Articles
    News

    EC Adopts Financial Reporting Changes Arising from Benchmark Reforms

    EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.

    January 14, 2021 WebPage Regulatory News
    News

    BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk

    BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.

    January 14, 2021 WebPage Regulatory News
    News

    HMT Updates List of Post-Brexit Equivalence Decisions in UK

    HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.

    January 14, 2021 WebPage Regulatory News
    News

    EBA Issues Erratum for Technical Package on Reporting Framework 3.0

    EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.

    January 14, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets

    APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.

    January 14, 2021 WebPage Regulatory News
    News

    EBA Publishes Risk Dashboard for Third Quarter of 2020

    EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.

    January 13, 2021 WebPage Regulatory News
    News

    ECB Analysis Shows Privacy as Biggest Concern in Use of Digital Euro

    ECB concluded the public consultation on the introduction of a digital euro in EU.

    January 13, 2021 WebPage Regulatory News
    News

    ECB Finalizes Guide on Supervisory Approach to Bank Consolidation

    ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.

    January 12, 2021 WebPage Regulatory News
    News

    SRB Chair Outlines Work Priorities for 2021

    The SRB Chair Elke König published an article setting out work priorities for 2021.

    January 11, 2021 WebPage Regulatory News
    News

    FDIC Selects Companies to Compete in Final Phase of Tech Sprint

    FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.

    January 11, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6417