The Basel Committee on Banking Supervision has published three reports assessing the rules that will implement Basel III in the EU, Japan and the US.
Conducted by independent teams of technical experts from a wide range of countries, the assessments compared the relevant domestic regulations with the Basel Committee’s global standards. The assessment teams comprehensively reviewed the capital requirements set out in the Basel II, Basel 2.5 and Basel III accords. In the case of the EU and the US, the teams assessed draft regulations, which will be the subject of follow-up reviews once they are finalised.
Stefan Ingves, chairman of the Basel Committee and governor of Sveriges Riksbank, Sweden’s central bank, said that the three reports demonstrated the Committee’s commitment to monitoring its members’ compliance with the globally agreed minimum standards.
He added: “It is pleasing that Japan’s transposition of the Basel III standards into final rules has been judged as compliant. In the case of the EU and the US, the gradings were based on draft regulations, meaning that there is now a window of opportunity for the gaps identified to be closed.”
The Basel III implementation review comprises the following three levels:
• Level 1: ensuring the timely adoption of Basel III.
• Level 2: regulatory consistency with Basel III.
• Level 3: consistency of outcomes (initially focusing on risk-weighted assets).
The Level 1 assessment outcomes for the three jurisdictions are also indicated in the reports. The Committee intends to publish an updated Level 1 report covering all Committee members in early October.