Global banking regulators issued new guidance on Wednesday dealing with the revised capital adequacy rules, known as Basel III.
The Basel Committee on Banking Supervision published its first set of guidance for local regulators in adopting the new standardized approach for operational risk capital.
The guidance is intended to “promote consistent global implementation” of the new Basel III requirements on operational risk, which take effect Jan. 1, 2022.
Among other things, the Basel Committee’s guidance covers the treatment of losses from outsourced activities, the treatment of non-performing loans, and the approach to accounting for acquisitions and divestitures.
Separately, former Canadian regulator Carolyn Rogers officially takes over as secretary general of the Basel Committee on Wednesday.
Rogers was previously assistant superintendent of regulation at the Office of the Superintendent of Financial Institutions (OSFI). Her initial term as head of the Basel Committee runs for three years. She also serves as the chair of the committee’s policy development group.