Basel Committee on Banking Supervision publishes progress report
07 July 2020 Switzerland
Image: pogonici/Shutterstock
The Basel Committee on Banking Supervision (BCBS) has published a new progress report on adoption of the Basel regulatory framework.
The report, which assessed all 27 member jurisdictions as of the end of May 2020, marked advancements against evaluations of risk-based capital requirements and post-crisis reforms from the previous report in October 2019.
The results showed that all 27 member jurisdictions have risk-based capital rules, liquidity coverage ratio (LCR) regulations and capital conservation buffers in force, and have issued either draft or final rules for the net stable funding ratio (NSFR).
It also found that 25 of those have adopted final rules for Basel’s domestic systemically important bank (D-SIB) requirement, including all members that are home jurisdictions to global systemically important banks (G-SIBs).
Meanwhile, 21 member jurisdictions have issued final rules for the revised securitisation framework, with 19 implementing final rules for capital requirements for equity investments in funds.
Since the previous report, there have been increases in the number of member jurisdictions that have issued final rules for bank exposures to central counterparties (CCPs) and measuring counterparty credit risk exposures, as well as the number that have issued draft or final rules for total loss-absorbing capacity and the large exposure framework.
Progress has also been made in implementing rules that are yet to come into effect. Some 14 member jurisdictions have issued draft or final rules for the leverage ratio based on the revised (2017) exposure definition.
Additionally, one member jurisdiction has final rules in place for the revised standardised approach for credit risk, while two member jurisdictions have final rules in place for the revised IRB approach for credit risk and the revised operational risk framework.
Moreover, nine member jurisdictions have issued final rules for the revised minimum requirements for market risk.
BCBS said while it welcomed the overall progress made on the implementation of standards
by member jurisdictions, it reaffirms its expectation of full, timely and consistent implementation of the Basel III post-crisis reforms and will continue monitoring closely the implementation of these reforms.
The report, which assessed all 27 member jurisdictions as of the end of May 2020, marked advancements against evaluations of risk-based capital requirements and post-crisis reforms from the previous report in October 2019.
The results showed that all 27 member jurisdictions have risk-based capital rules, liquidity coverage ratio (LCR) regulations and capital conservation buffers in force, and have issued either draft or final rules for the net stable funding ratio (NSFR).
It also found that 25 of those have adopted final rules for Basel’s domestic systemically important bank (D-SIB) requirement, including all members that are home jurisdictions to global systemically important banks (G-SIBs).
Meanwhile, 21 member jurisdictions have issued final rules for the revised securitisation framework, with 19 implementing final rules for capital requirements for equity investments in funds.
Since the previous report, there have been increases in the number of member jurisdictions that have issued final rules for bank exposures to central counterparties (CCPs) and measuring counterparty credit risk exposures, as well as the number that have issued draft or final rules for total loss-absorbing capacity and the large exposure framework.
Progress has also been made in implementing rules that are yet to come into effect. Some 14 member jurisdictions have issued draft or final rules for the leverage ratio based on the revised (2017) exposure definition.
Additionally, one member jurisdiction has final rules in place for the revised standardised approach for credit risk, while two member jurisdictions have final rules in place for the revised IRB approach for credit risk and the revised operational risk framework.
Moreover, nine member jurisdictions have issued final rules for the revised minimum requirements for market risk.
BCBS said while it welcomed the overall progress made on the implementation of standards
by member jurisdictions, it reaffirms its expectation of full, timely and consistent implementation of the Basel III post-crisis reforms and will continue monitoring closely the implementation of these reforms.
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