Basel III Update

The Basel Committee has just published its sixteenth progress report on adoption of the Basel regulatory framework

In it, the committee sets out the adoption status of Basel III standards for each Basel Committee on Banking Supervision (BCBS) member jurisdiction as at the end-March 2019.

This is an update to the Committee’s previous progress reports, which have been published on a semiannual basis since October 2011. In 2012, the Committee started the Regulatory Consistency Assessment Programme (RCAP) to monitor progress in introducing domestic regulations, assessing their consistency and analysis in regulatory outcomes. As part of this program, the Committee periodically monitors the adoption of Basel standards. The monitoring initially focused on the Basel risk-based capital requirements, and has since expanded to cover all Basel standards. These include the finalised Basel III post-crisis reforms published by the Committee in December 2017, which will take effect from 1 January 2022 and which will be phased in over five years.

As of the end-March 2019, all 27 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 and the domestic systemically important bank (D-SIB) requirement.

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. The leverage ratio based on the existing (2014) exposure definition has been partly or fully implemented in 26 member jurisdictions.

Moreover, 26 member jurisdictions have issued draft or final rules for the Net Stable Funding Ratio (NSFR), and 21 member jurisdictions have issued final rules for the revised securitisation framework. Also, 26 member jurisdictions have issued draft or final rules for the standardised approach for measuring counterparty credit risk exposures (SA-CCR), and 24 member jurisdictions have issued draft or final rules for the capital requirements for bank exposures to central counterparties (CCPs).

You can access the full report, with detailed statuses for each member jurisdiction HERE.

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From PYMNTS.com –

“The U.K. Financial Conduct Authority has decided not to publish a long-anticipated report on the state of small business banking for the nation’s largest financial institutions, a decision that has angered some SME advocates, according to reports published Thursday (December 31).

According to Business Insider, it only took a few hours until the political firestorm arose after the FCA announced its decision.”

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From GARP –

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Until recently, it was largely the second line of defense (the independent risk management team) that led the risk management exercise, while the front line focused more on sales and revenue targets. The latter’s risk responsibilities were largely limited to not breaching risk thresholds.”

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