Global banking regulators see progress on the post-crisis reforms to global capital rules, according to a report published on Monday by The Basel Committee on Banking Supervision.
The 14th rogress report on adoption of the Basel regulatory framework provides a high-level view of Basel Committee members’ progress in adopting Basel III standards following the global financial crisis.
According to the report, regulators found that jurisdictions have made further progress at implementing new standards, including measures such as leverage requirements, developing rules to adopt the net stable funding ratio and revised rules on securitization.
However, there has been “limited progress” on the implementation of some standards that were required to be adopted in 2017, the report says, including the standardized approach for measuring counterparty credit risk exposures, and the capital requirements for bank exposures to central counterparties and equity investments in funds.
Additionally, there’s work ongoing to implement Basel III standards that are set to take effect within the next 12 months, including the supervisory framework for measuring and controlling large exposures, the standard for interest rate risk in the banking book, and the requirements for total loss-absorbing capacity.
The Basel Committee calls on policymakers in various jurisdictions to “strive for full, timely and consistent implementation of Basel III post-crisis reforms”, the report says, adding that the committee will continue to closely monitor the implementation of reforms, which have deadlines that continue into 2022.