BCBS Report Examines Progress on Adoption of Basel Framework
BCBS published the seventeenth progress report on adoption of Basel regulatory framework. The report sets out the adoption status of Basel III standards for each member jurisdiction as of the end of September 2019. 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. The report highlights that significant progress has been observed in the implementation of the disclosure framework. Moreover, since the previous report in May 2019, member jurisdictions have made further progress in implementing capital requirements for bank exposures to central counterparties, with twenty-four member jurisdictions having issued draft or final rules.
As of the end of September 2019, all member jurisdictions have risk-based capital rules, liquidity coverage ratio (LCR) regulations, and capital conservation buffers in force. Twenty-six member jurisdictions also have final rules in force for the countercyclical capital buffer. With regard to the global systemically important bank (G-SIB) requirements published in 2013, all members that are home jurisdictions to G-SIBs have final rules in force. Twenty-one member jurisdictions have issued final rules for the revised securitization framework. Other key highlights of the report include:
- Nineteen jurisdictions have final rules in place for capital requirements for equity investments in funds.
- Ten jurisdictions have issued final rules for revised minimum requirements for market risk either for capital or reporting purposes.
- The leverage ratio based on the existing (2014) exposure definition has been partly or fully implemented in twenty-six member jurisdictions, whereas thirteen jurisdictions have issued draft or final rules for the leverage ratio based on the revised (2017) exposure definitions.
- Twenty-six member jurisdictions have issued draft or final rules for the standardized approach for measuring counterparty credit risk exposures, or SA-CCR.
- Significant progress has been made in implementing the standard on interest rate risk in the banking book and the supervisory framework for measuring and controlling large exposures, with the number of jurisdictions that have issued draft or final rules increasing to twenty-four and twenty-five, respectively.
- Moreover, twenty-two member jurisdictions have issued draft or final rules for the net stable funding ratio or NSFR.
While BCBS welcomes the overall progress made on the implementation of standards by member jurisdictions, it urges the members to strive for full, timely, and consistent implementation of Basel III post-crisis reforms and plans to continue monitoring the implementation of these reforms. Additionally, BCBS plans to complete its review of the implementation of the NSFR and the large exposures framework for all member jurisdictions by March 2021.
Related Links
Keywords: International, Banking, Basel III, Progress Report, NSFR, SA-CCR, IRRBB, Large Exposures, BCBS
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks
The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
