Featured Product

    BCBS Reports to G20 Leaders on Implementation of Basel III Reforms

    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

    Featured Experts
    Related Articles
    News

    EC Delegated Regulation on Specialized Lending Exposures Under CRR

    EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.

    April 14, 2021 WebPage Regulatory News
    News

    OSFI Consults on Minimum Qualifying Rate for Uninsured Mortgages

    OSFI is proposing new minimum qualifying rate for uninsured mortgages under the Guideline B-20.

    April 13, 2021 WebPage Regulatory News
    News

    OSFI Issues Letter on ICAAP Submission and Internal Audit of BCAR

    OSFI issued a letter to confirm that a formal Internal Capital Adequacy Assessment Process (ICAAP) submission is not required in 2021.

    April 12, 2021 WebPage Regulatory News
    News

    ECB Updates List of Supervised Entities in EU in April 2021

    ECB updated the list of supervised entities in EU, with the number of significant supervised entities amounting to 115 as of the March 01, 2021 cut-off date.

    April 12, 2021 WebPage Regulatory News
    News

    ESMA Issues Notification Templates for STS Synthetic Securitizations

    ESMA published the interim simple, transparent, and standardized (STS) notification templates for synthetic securitizations, post the recent amendments to the Securitization Regulation.

    April 09, 2021 WebPage Regulatory News
    News

    EC Agrees to Prolong Scheme to Support NPL Reduction at Greek Banks

    EC has approved the prolongation of an existing Greek scheme aiming to support the reduction of nonperforming loans, or NPLs, of Greek banks on the basis that it remains free of any State aid.

    April 09, 2021 WebPage Regulatory News
    News

    EIOPA Study Examines Internal Model Market and Credit Risks Under SII

    EIOPA published a report presenting the results of its yearly study on the internal modeling of market and credit risks under the Solvency II Directive, also known as SII.

    April 09, 2021 WebPage Regulatory News
    News

    EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    EBA Updates Lists of Entities for Use in Capital Calculations under SA

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    FED Proposes to Automate Bank Stock Adjustment Using Call Report Data

    FED published a proposal to automate non-merger-related adjustments to member banks' subscriptions to Federal Reserve Bank capital stock.

    April 08, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6835