Basel III Regulatory Consistency Assessment Programme (RCAP) - Handbook for jurisdictional assessments

March 2016

Basel III Implementation

Basel Committee's Regulatory Consistency Assessment Programme: Jurisdictional Assessments

Implementation of the Basel III framework is a key global regulatory reform priority. Full and consistent implementation within the internationally agreed timeframe is aimed at strengthening the resilience of the banking system, improving market confidence in regulatory ratios and promoting a level playing field. 

To facilitate the implementation process, the Basel Committee adopted in 2012 a comprehensive Regulatory Consistency Assessment Program (RCAP). The RCAP consists of two distinct but complementary work streams to monitor the timely adoption of Basel III standards, and to assess the consistency and completeness of the adopted standards including the significance of any deviations in the regulatory framework. It also facilitates an effective dialogue among Basel Committee members and informs its broader standards-development work.

The assessment work is carried out on a jurisdictional as well as on a thematic basis. Currently, the focus of the RCAP is on risk-based capital standards, Liquidity Coverage Ratio (LCR) and Systemically Important Banks' (SIBs) framework. This will further expand from 2017 to cover Basel III standards on Net Stable Funding Ratio (NSFR) and Leverage Ratio.

Based on the experience with the RCAP to date, the Basel Committee has updated the procedures and process for conducting jurisdictional assessments under the RCAP in one document, the Handbook for Jurisdictional Assessments (the Handbook). The Handbook describes the complete assessment programme and also introduces the RCAP questionnaires, which member jurisdictions complete ahead of the assessment and update it regularly. Both the Handbook and the RCAP questionnaires will help all regulators, supervisors and financial stability authorities to evaluate their own progress with implementation of Basel III framework and identify areas for improvement. These documents will be kept under review and updated as the scope of the RCAP expands to include other aspects of the Basel III framework.