There’s still work to do on implementing the latest post-crisis edition of the global capital regime for banks, known as Basel III, according to a new report from the Basel Committee on Banking Supervision.
On Tuesday, the Basel Committee issued its latest report reviewing the status of Basel III implementation across the world, which found that there has been “limited” progress at adopting certain standards, such as rules regarding the net stable funding ratio (NSFR), which were supposed to take effect in January 2018.
For instance, the Basel Committee found that final rules are in force in this area in only 11 out of 27 Basel jurisdictions.
In other areas where the deadline for implementing certain standards has passed — such as the revised securitization framework and the latest leverage ratio requirements — the report found that further progress in implementing standards has been made since the Basel Committee’s previous report in October 2018.
For Canada, the report indicated the country has met the deadline for most standards. A couple of exceptions include the rules for interest rate risk in the banking book, which won’t be adopted until 2020, and certain disclosure requirements.
The report focused on the status of adoption of all the post-crisis Basel III standards, including the reforms published in December 2017.