Sixth report from the Basel Committee on Banking Supervision

December 12th, 2015 by Stephen Jones Leave a reply »

A report to G20 Leaders on implementation of the Basel III regulatory reforms continues to promote a resilient financial system maintaining public confidence.
This is the sixth report from the Basel Committee on Banking Supervision to update G20 Leaders on
progress in implementing the Basel III regulatory reforms by the 27 Basel Committee member jurisdictions.
1 It summarises the outcomes from the Committee’s Regulatory Consistency Assessment Programme (RCAP), which comprises three parts:
(i) monitoring the progress in adopting Basel III
standards;
(ii) assessing the consistency of national or regional banking regulations with the Basel III standards;
(iii) analysing the prudential outcomes that are produced by those regulations.The current report updates G20 Leaders on progress in the implementation of the Basel III regulatory reforms since the last report November 2014.

Within the report Basel III standards include banks’ progress in bolstering their capital and liquidity positions. It was also is accompanied by a separate report from the Committee to G20 Leaders on finalizing the post-crisis reforms.

The report summarises the steps taken by Basel Committee member jurisdictions to adopt the Basel III standards, banks’ progress in bolstering their capital and liquidity positions, the consistency of implementation in jurisdictions assessed since the Committee’s last report and the Committee’s implementation work plan. It is accompanied by a separate report from the Committee to G20 Leaders on finalising the post-crisis reforms.

The only regional assessment was for Saudi Arabia’s implementation of the Basel risk-based capital framework which was found to be closely aligned with the Basel III standards. All 14 assessed components were found to be “compliant”, and the overall
framework of Saudi Arabian capital regulation was graded “compliant”.

Saudi Arabia’s overall implementation of the LCR standard was graded “largely compliant”. Of the two assessed components, implementation of the LCR disclosure requirements was found to be “compliant”. Implementation of the LCR was found to be “largely compliant”, due to one material finding with respect to the definition of HQLA.

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