Featured Product

    BCBS Report Examines Progress on Adoption of Basel III Framework

    October 14, 2021

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions. The report sets out the jurisdictional adoption status of the Basel III standards as of the end of September 2021. This includes the Basel III post-crisis reforms published by BCBS in December 2017 and the finalized minimum capital requirements for market risk published in January 2019. Since the previous report in July 2020, member jurisdictions have made further progress in implementing standards, especially those whose deadlines have passed, despite the disruptions resulting from COVID-19 pandemic and the required shift in regulatory and supervisory priorities.

    The report highlights that all jurisdictions now have final rules in force for the countercyclical capital buffer (CCyB). In respect of the outstanding capital standards, there have been eleven new adoptions. This includes three additional jurisdictions (Australia, Mexico, and US) that have adopted the final rules with regard to total loss-absorbing capacity (TLAC); two additional jurisdictions (Russia and South Africa) that have adopted final rules for standardized approach for measuring counterparty credit risk exposure (SA-CCR) and capital requirements for equity investments in funds; and four additional jurisdictions (Switzerland, Japan, Mexico, and US) that have adopted the net stable funding ratio (NSFR) standard. There have been seven additions across the disclosure parts of the framework too, in addition to the new adopters of the revised operational risk framework and the revised standardized approach for credit risk. The report excludes standards that have been already implemented by all jurisdictions, such as the liquidity coverage ratio (LCR) and the capital conservation buffers.

    Further evaluation of the consistency of jurisdictional implementation is addressed through the Regulatory Consistency Assessment Program (RCAP) assessments. The outstanding RCAP on the net stable funding ratio and large exposures framework are expected to resume soon, as they were suspended last year in response to the COVID-19 pandemic. The report is complemented by a newly developed dashboard to reflect the full history of Basel III implementation and provide an overview of the progress up to date. The dashboard will be updated regularly and is intended to replace the existing report publications.


    Related Links

    Keywords: International, Banking, Basel, Progress Report, CCyB, Large Exposures, Credit Risk, Market Risk, Operational Risk, Regulatory Capital, NSFR, SA-CCR, RCAP, COVID-19, BCBS

    Featured Experts
    Related Articles

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News

    EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules

    The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.

    October 31, 2023 WebPage Regulatory News

    BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks

    As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.

    October 19, 2023 WebPage Regulatory News

    BCBS and EBA Publish Results of Basel III Monitoring Exercise

    The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.

    October 18, 2023 WebPage Regulatory News

    PRA Updates Timeline for Final Basel III Rules, Issues Other Updates

    The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.

    October 18, 2023 WebPage Regulatory News

    US Treasury Sets Out Principles for Net-Zero Financing

    The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.

    October 17, 2023 WebPage Regulatory News

    EC Launches Survey on G7 Principles on Generative AI

    The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.

    October 14, 2023 WebPage Regulatory News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8938