Implementation of Basel standards - Regulatory Consistency Assessment Programme (RCAP)
Consistency in the adoption and implementation of Basel standards is critical to improving the resilience of the global banking system, promoting public confidence in prudential ratios and encouraging a predictable and transparent regulatory environment for internationally active banks. The Basel Committee and its governing body, the Group of Governors and Heads of Supervision, have therefore set as a high priority the full and effective implementation of Basel standards within the globally-agreed time frame. The Committee also provides updates to the G20 on implementation progress.
To facilitate this process, the Basel Committee adopted in 2012 a comprehensive Regulatory Consistency Assessment Programme (RCAP) that complements the Committee's work on development of prudential standards. It also benefits from and contributes to the Committee's quantitative impact studies (QIS) and supports the Committee's broader and ongoing analytical and monitoring work.
The RCAP consists of two distinct but interlinked modules covering the Basel capital standards, liquidity and leverage standards, and requirements relating to systematically important banks:
- Implementation monitoring of the Basel standards
- Consistency assessments carried out on a jurisdictional and thematic basis:
- Member jurisdiction assessments review the extent to which domestic regulations are aligned with the minimum Basel requirements agreed by the Committee and help identify material gaps in the regulations.
--> Schedule of future RCAP assessments
- Thematic assessments examine bank implementation of the Basel requirements and seek to ensure that prudential ratios are calculated consistently by banks across jurisdictions to improve comparability across outcomes. Thematic assessments extend the findings of the Committee's implementation monitoring (see also the QIS-related monitoring) and member jurisdiction assessments.
Over the past years, the Financial Stability Institute (FSI) has conducted surveys on subjects of supervisory interest and shared the results with the supervisory community.