Basel Committee urges full, timely and consistent implementation of Basel III post-crisis reforms

The Basel Committee on Banking Supervision (BCBS) has issued the Fourteenth progress report on adoption of the Basel regulatory framework.

The report sets out the adoption status of Basel III standards for each BCBS member jurisdiction as of end-March 2018. It includes for the first time the finalised Basel III post-crisis reforms published by the Committee in December 2017. These recent reforms will take effect from 1 January 2022.

As noted by the Committee's oversight body, the Group of Central Bank Governors and Heads of Supervision (GHOS), the Committee expects full, timely and consistent implementation of Basel III post-crisis reforms by member jurisdictions.

Since the last report published in October 2017, member jurisdictions have made further progress in implementing standards. Notably, the report shows that:

1. the leverage ratio, based on the existing exposure definition, is now in force in most member jurisdictions

2. 24 member jurisdictions have issued draft or final rules for the Net Stable Funding Ratio (NSFR)

3. 19 member jurisdictions have issued draft of final rules for the revised securitisation framework

However, the report also shows that:

1. limited progress has been made in the implementation of some technical standards whose implementation deadlines passed in 2017. These include the standardised approach for measuring counterparty credit risk exposures and the capital requirements for bank exposures to central counterparties and for equity investments in funds.

2. member jurisdictions continue to work towards implementing Basel III standards that have an implementation deadline within the next 12 months. These include the supervisory framework for measuring and controlling large exposures (LEX), the standard for interest rate risk in the banking book (IRRBB) and the requirements for total loss-absorbing capacity (TLAC).

The Committee urges member jurisdictions to strive for full, timely and consistent implementation of Basel III post-crisis reforms and will keep monitoring closely the implementation of these reforms.

Re-disseminated by The Asian Banker

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