BCBS Defers Implementation of Final Basel III Standards by One Year
BCBS has announced deferral of the implementation date of the final Basel III standards by one year, to January 01, 2023. The Group of Central Bank Governors and Heads of Supervision (GHOS), which is the oversight body of BCBS, has endorsed this set of measures to provide additional operational capacity for banks and supervisors to respond to the immediate financial stability priorities resulting from the impact of COVID-19 on the global banking system.
|
Basel Standard |
Original Implementation Date |
Revised Implementation Date |
|
Revised leverage ratio framework and G-SIB buffer |
January 01, 2022 |
January 01, 2023 |
|
Revised standardized approach for credit risk |
January 01, 2022 |
January 01, 2023 |
|
Revised internal ratings-based approach for credit risk |
January 01, 2022 |
January 01, 2023 |
|
Revised operational risk framework |
January 01, 2022 |
January 01, 2023 |
|
Revised credit valuation adjustment framework |
January 01, 2022 |
January 01, 2023 |
|
Revised market risk framework |
January 01, 2022 |
January 01, 2023 |
|
Output floor |
January 01, 2022-January 01, 2027 (transitional arrangements) |
January 01, 2023-January 01, 2028 (transitional arrangements) |
|
Revised Pillar 3 disclosure framework |
January 01, 2022 |
January 01, 2023 |
These standards were finalized with the objective of complementing the initial set of Basel III standards. The revised timeline is therefore not expected to dilute the capital strength of the global banking system, but will provide banks and supervisors additional capacity to respond immediately and effectively to the impact of COVID-19. GHOS members unanimously reaffirmed their expectation of full, timely, and consistent implementation of all Basel III standards based on this revised timeline. Once again, the current events demonstrate the importance of a resilient financial system, which these reforms will help further reinforce.
Related Links
Keywords: International, Banking, Basel III, Market Risk, Credit Risk, CVA Risk, Output Floor, Disclosures, Pillar 3, Operational Risk, Leverage Risk, COVID-19, 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
Previous Article
ECB Updates Recommendation on Dividend Distribution Policy of BanksRelated Articles
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.
