BCBS published a report for the G20 Leaders updating them on the implementation of Basel III regulatory reforms by its 27 member jurisdictions. The report summarizes steps taken by the Basel Committee member jurisdictions to adopt the Basel III standards, banks' progress in bolstering their capital and liquidity positions, the consistency of implementation in jurisdictions assessed since the Committee's last report, and the Committee's implementation work plan.
The report reveals that further progress has been made in implementing the Basel III standards. The implementation of capital and liquidity standards has generally been timely and consistent, with banks continuing to build higher and better capital and liquidity buffers. Member jurisdictions continue their efforts to implement other Basel III standards, with good progress in some areas, such as margin requirements for non-centrally cleared derivatives and the net stable funding ratio or NSFR. However, challenges remain in timely regulatory adoption of standards such as the standardized approach for measuring counterparty credit risk (SA-CCR), capital requirements for exposures to central counterparties, and capital requirements for equity investments in funds. Additionally, a considerable number of Basel standards remain due to be transposed into domestic regulations over the next couple of years, including those on market risk capital requirements, limits on large exposures, and securitization.
This report updates G20 Leaders on progress and challenges in the implementation of the Basel III regulatory reforms since August 2016, when the Basel Committee last reported to the G20. This is the sixth such annual report and it summarizes the outcomes of the Regulatory Consistency Assessment Program, or RCAP, of BCBS. Full, timely, and consistent implementation of Basel III remains fundamental to building a resilient financial system, maintaining public confidence in regulatory ratios, and providing a level playing field for internationally active banks.
Keywords: International, BCBS, Basel III, RCAP, Regulatory Reforms, G20, Banking
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.
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.
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.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
The SRB Chair Elke König published an article setting out work priorities for 2021.
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.