The Basel Committee on Banking Supervision calling on policymakers to step up the implementation of certain post-crisis reforms whose deadlines have now passed.
The committee on Friday issued its latest progress report on the adoption of the latest reforms to the capital adequacy regime, known as Basel III, which were developed in response to the global financial crisis.
Although progress is being made in certain areas, according to the report, others still need work.
For instance, the report finds that “limited progress” has been made on the implementation of certain standards, such as the new net stable funding ratio (NSFR), whose implementation deadlines have passed. So far, only 10 jurisdictions have final NSFR rules in force, it notes.
The report calls on jurisdictions to, “strive for full, timely and consistent implementation” of the Basel III standards, adding that the Basel Committee will continue to closely monitor the implementation of these standards.
More progress has been made in other areas where the deadline has passed, or is imminent, the report says, including the rules regarding the leverage ratio, the large exposures framework, and the standard on interest rate risk in the banking book.
The final Basel III reforms are slated to take effect in January 2022.