Regulatory Consistency Assessment Programme (RCAP) - Assessment of Basel III regulations in Australia

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BCBS  | 
Implementation reports
17 March 2014
Status:  Current

Through its Regulatory Consistency Assessment Programme (RCAP), the Basel Committee monitors the timely adoption of regulations by its members, assesses their consistency with the Basel framework and analyses the quality of intended regulatory outcomes. The RCAP also helps member jurisdictions to identify deviations from the Basel framework and assesses their materiality. This report describes the Committee's assessment of the implementation of the Basel capital standards in Australia. 

Australia's implementation of the Basel capital framework was found to be closely aligned with the Basel III standards. 12 out of 14 assessed components were found to be "Compliant", the highest possible grade. Two components were graded "Largely Compliant" (one notch below the highest grade): the "Definition of Capital" and the "Internal Ratings-Based Approach for credit risk", where some differences exist vis-à-vis the Basel framework. The overall framework of Australia's capital regulation was graded "Compliant".