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
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
ECB Updates Recommendation on Dividend Distribution Policy of BanksRelated Articles
PRA to Elaborate on Approach to Transposition of CRD5 by Mid-December
PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.
EIOPA Consults on KPIs on Sustainability for Non-Financial Reporting
EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.
SRB Sets Out Work Program for 2021-2023
SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.
ECB Publishes Guide on Management of Climate and Environmental Risks
ECB finalized guidance on the way it expects banks to prudently manage and transparently disclose climate and other environmental risks under the current prudential rules.
BCBS Amends Capital Treatment of Non-Performing Loan Securitizations
BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.
BoE to Move Statistical Data Collection to BEEDs Portal
BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.
APRA Updates Reporting Standards and Guidance for EFS Data Collection
APRA published the updated reporting standards and guidance for the collection of Economic and Financial Statistics (EFS), following a consultation process. Also published was a response letter to the feedback received on the proposal for amending the EFS reporting standards and guidance.
EC Consults on Criteria for Environmentally Sustainable Activities
EC is consulting on a draft delegated regulation to supplement the Taxonomy Regulation (2020/852) by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as environmentally sustainable.
IFRS Examines Incorporation of Climate Risk Issues into IFRS Standards
The IFRS Foundation published material highlighting the ways in which existing requirements in IFRS standards require companies to consider climate-related matters when their effect is material to the financial statements.
FSB Report Outlines Progress on Interest Rate Benchmark Reform
FSB published a progress report on the implementation of reforms to major interest rate benchmarks, including the London Inter-bank Offered Rate (LIBOR) benchmark.
