The Basel Committee on Banking Supervision (BCBS) has released a progress update on the implementation of the Basel regulatory framework.
This report outlines the adoption status of Basel III standards on a jurisdiction-by-jurisdiction basis at the end of September 2021.
This summarises progress in implementing the Basel III post-crisis reforms released by the BCBS in December 2017 and the finalised minimum capital requirements for market risk published in January 2019.
These reforms will take effect from 1 January 2023.
Accompanying the report, the BCBS Progress Report on the Adoption of the Basel Regulatory Framework, the Basel Committee has released a dashboard which summarises progress in implementing the Basel framework and offers a full history of Basel III adoption.
This dashboard will be updated regularly and replaces the previous system of updates issued through a series of report publications.
The report concludes that member jurisdictions have made further progress in adopting Basel III standards, despite the constraints presented by the COVID-19 pandemic and the shift in regulatory and supervisory priorities that this necessitated. Some jurisdictions used flexibility in the Basel framework as a foundation for providing regulatory relief during the pandemic.
It finds that all jurisdictions now have final rules in place for the countercyclical capital buffer. For the outstanding capital standards, there have been new adoptions in 11 jurisdictions.
This includes three additional jurisdictions which have adopted final rules relating to total loss-absorbing capacity (TLAC).
Two member jurisdictions have adopted final rules regarding use of a standardised approach for measuring counterparty credit risk exposure and two jurisdictions have adopted capital requirements for equity investments in funds.
Four further jurisdictions have adopted the net stable funding ratio (NSFR) standard.
One jurisdiction during the reporting period has adopted rules relating to margin requirements for non-centrally cleared derivatives.
The report does not include standards that had previously been adopted by all 27 reporting jurisdictions — for example, adoption of the liquidity coverage ratio (LCR) and capital conservation buffers (CCoB).
All BCBS member jurisdictions are subject to an evaluation of how far their domestic rules are consistent with Basel standards. This work was suspended in 2020, but is expected to resume in the near future.
BCBS will conduct further assessment of the consistency of regulatory adoption across jurisdictions through its Regulatory Consistency Assessment Programme (RCAP).
