BCBS releases adoption progress update
03 October 2023 Switzerland
Image: Cozine/stock.adobe.com
The Basel Committee on Banking Supervision (BCBS) has released an update on the Basel III adoption progress, as of the end of September 2023.
The update considers outstanding standards that remain after the Basel III framework’s 1 January 2023 implementation date, outlining progress that has been made by BCBS member jurisdictions since the end-September 2022 update.
BCBS states that most member jurisdictions are in the process of implementation and have published draft rules, with a third having implemented all or the majority of Basel III standards. While individual jurisdictions are at different stages of implementation, the committee notes that most have published draft rules for consultation.
The Group of Central Bank Governors and Heads of Supervision (GHOS), which oversees BCBS, affirms that two-thirds of member jurisdictions have planned to implement all or the majority of standards by the end of 2024. The remaining third expect to reach this target in 2025.
In regard to longer past-due standards, five implementations have been completed for disclosure standards and three for interest rate risk in the banking book standard. Final rules have been issued for each large exposures framework, the capital standards for securitisations, the Net Stable Funding Ratio and margin requirements for non-centrally cleared derivatives.
The update forms part of the committee’s Regulatory Consistency Assessment Programme (RCAP), designed to track the adoption and implementation of domestic regulations, assessing their consistency and analysing outcomes.
The GHOS states that it is prioritising the implementation of the Basel III “in full, consistently and as soon as possible”.
The update considers outstanding standards that remain after the Basel III framework’s 1 January 2023 implementation date, outlining progress that has been made by BCBS member jurisdictions since the end-September 2022 update.
BCBS states that most member jurisdictions are in the process of implementation and have published draft rules, with a third having implemented all or the majority of Basel III standards. While individual jurisdictions are at different stages of implementation, the committee notes that most have published draft rules for consultation.
The Group of Central Bank Governors and Heads of Supervision (GHOS), which oversees BCBS, affirms that two-thirds of member jurisdictions have planned to implement all or the majority of standards by the end of 2024. The remaining third expect to reach this target in 2025.
In regard to longer past-due standards, five implementations have been completed for disclosure standards and three for interest rate risk in the banking book standard. Final rules have been issued for each large exposures framework, the capital standards for securitisations, the Net Stable Funding Ratio and margin requirements for non-centrally cleared derivatives.
The update forms part of the committee’s Regulatory Consistency Assessment Programme (RCAP), designed to track the adoption and implementation of domestic regulations, assessing their consistency and analysing outcomes.
The GHOS states that it is prioritising the implementation of the Basel III “in full, consistently and as soon as possible”.
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