BCBS releases Basel III monitoring exercise results
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BCBS releases Basel III monitoring exercise results 20 March 2019Basel Reporter: Maddie Saghir
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Changes in the minimum required capital from fully phased-in final Basel III “remain stable for large internationally active banks compared with end 2017, leaving the recently recalibrated market risk standards aside”, according to a Basel III monitoring exercise by the Basel Committee on Banking Supervision (BCBS).
To assess the impact of the Basel III framework on banks, the BCBS monitors the effects and dynamics of the reforms.
A semiannual monitoring framework has been set up on the risk-based capital ratio, the leverage ratio and the liquidity metrics using data collected by national supervisors on a representative sample of institutions in each country.
The BCBS stated: “The committee monitors and evaluates the impact of these capital, leverage and liquidity requirements on a semiannual basis. This report summarises the results of the latest Basel III monitoring exercise using 30 June 2018 data.”
Other highlights from the results revealed that all banks continue to meet initial Basel III minimum and target CET1 capital requirements.
Additionally, all banks in the sample reported Liquidity Coverage Ratios (LCRs) that met or exceeded the final 100 percent minimum requirement, according to the results.
The final Basel III minimum requirements are expected to be implemented by 1 January 2022 and fully phased in by 1 January 2027.
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