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.
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Keywords: International, Banking, Basel III, Market Risk, Credit Risk, CVA Risk, Output Floor, Disclosures, Pillar 3, Operational Risk, Leverage Risk, COVID-19, BCBS
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