General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
November 23, 2018

BCBS published a report updating the G20 Leaders on progress and challenges in the implementation of Basel III regulatory reforms. This report covers progress made since July 2017, when the Basel Committee last reported to the G20. The report summarizes steps taken by the 27 Basel Committee member jurisdictions to adopt the Basel III standards. The report also assesses the progress of banks toward bolstering their capital and liquidity positions, reviews the consistency of implementation in assessed jurisdictions, and presents the implementation work plan of BCBS.

The report highlights that further progress has been made since last year in implementing the Basel III standards in a full, timely, and consistent manner. In addition, banks have continued to build capital and liquidity buffers while reducing their leverage. The Basel III standards for capital, liquidity and global systemically important banks (G-SIBs) have generally been transposed into domestic regulations within the time frame set by the Basel Committee. The key components, including the risk-based capital standards and the liquidity coverage ratio (LCR), are enforced by all member jurisdictions. Additionally, member jurisdictions continue their efforts to adopt other Basel III standards, including those on margin requirements for non-centrally cleared derivatives, the net stable funding ratio (NSFR), the leverage ratio, revised securitization framework, standardized approach for measuring counterparty credit risk exposures (SA-CCR), capital requirements for bank exposures to central counterparties (CCPs), and revised Pillar 3 disclosure requirements.

However, challenges remain, particularly regarding the timely regulatory adoption of these standards. While some member jurisdictions have implemented the standards based on the agreed timelines, others have faced delays so that, in many jurisdictions, rules have yet to be finalized or put into effect. Further, some jurisdictions have reported that their implementation of certain standards has been or will be delayed. This is notably the case for the NSFR, with only 10 member jurisdictions having final rules in force. Consistent with last year’s report, limited progress has been also observed in the implementation of capital requirements for equity investments in funds. A considerable number of Basel standards remain due to be transposed into domestic regulations over the next few years, including the requirements for total loss-absorbing capacity (TLAC) holdings and disclosure, the supervisory framework for measuring and controlling large exposures, and the final Basel III reforms, which were issued in December 2017. 

The Committee urges member jurisdictions to complete the implementation of standards whose implementation date has passed and to start the process of transposing the final Basel III reforms into their domestic (national or regional) banking regulations. To maximize the benefits of these reforms, the Basel Committee will continue to closely monitor the implementation and impact of its standards and report to the G20 on progress. This is the Basel Committee's ninth report that summarizes outcomes of the Regulatory Consistency Assessment Program (RCAP) of BCBS. 


Related Links

Keywords: International, Banking, Basel III, RCAP, G20, Regulatory Reforms, BCBS

Related Insights

EBA Single Rulebook Q&A: Third Update for February 2019

EBA published answers to two questions under the Single Rulebook question and answer (Q&A) updates for this week.

February 15, 2019 WebPage Regulatory News

FSB Report Examines Financial Stability Implications of Fintech

FSB published a report that assesses fintech-related market developments and their potential implications for financial stability.

February 14, 2019 WebPage Regulatory News

US Agencies Amend Regulatory Capital Rule to Allow Phase-In for CECL

US Agencies (FDIC, FED, and OCC) adopted the final rule to address changes to credit loss accounting under the U.S. generally accepted accounting principles; this includes banking organizations’ implementation of the current expected credit losses (CECL) methodology.

February 14, 2019 WebPage Regulatory News

FED Issues Correction in Historical Dataset in its 2019 Stress Tests

FED identified an error in the historical dataset used in its 2019 stress tests and issued a correction.

February 13, 2019 WebPage Regulatory News

OCC Consults on Company-Run Stress Test Requirements for Banks

OCC proposed amendments to its company-run stress testing requirements for national banks and Federal savings associations, consistent with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

February 12, 2019 WebPage Regulatory News

CFTC Extends Comment Periods for Trade Execution Requirement Proposals

CFTC announced that it is extending comment period for the proposed amendments related to the regulations on swap execution facilities (SEF) and trade execution requirement.

February 12, 2019 WebPage Regulatory News

BCBS Updates Instructions for Basel III Monitoring Exercise

BCBS updated instructions for Basel III monitoring for the collection of December 2018 data from the participating banks.

February 12, 2019 WebPage Regulatory News

OCC Proposes to Renew Information Collection Under Stress Test Rule

OCC is proposing to renew its information collection titled “Annual Stress Test Rule” (OMB Control No: 1557-0311). Comments must be received on or before March 13, 2019.

February 11, 2019 WebPage Regulatory News

OSFI Consults on NSFR Disclosure Requirements for D-SIBs

OSFI proposed the draft guideline on the net stable funding ratio (NSFR) disclosure requirements for domestic systemically important banks (D-SIBs).

February 11, 2019 WebPage Regulatory News

EC Amends Its Regulation to Clarify Impairment Requirements for IFRS 9

EC published the EU Regulation 2019/237 that amends Regulation (EC) No 1126/2008 adopting certain international accounting standards, in accordance with Regulation (EC) No 1606/2002 regarding International Accounting Standard (IAS) 28 on Investments in Associates and Joint Ventures.

February 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2601