BCBS Report Examines Progress on Adoption of Basel III Framework
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

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
FINMA Approves Merger of Credit Suisse and UBS
The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
MFSA Sets Out Supervisory Priorities, Issues Reporting Updates
The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023
German Regulators Issue Multiple Reporting Updates for Banks
Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.