Basel III regulatory consistency assessment (Level 2). Assessment of Basel III regulations - China

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BCBS  | 
Implementation reports
27 September 2013
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 China. 

China's implementation of the Basel capital framework was found to be closely aligned with the Basel III global standards: 12 out of 14 assessed components were found to be "Compliant", the highest possible grade. The two components that were graded "Largely Compliant" (one notch below the highest grade) pertain to the Standardised Approach for credit risk and Pillar 3. Although some differences with the Basel framework were found in these areas, none of the findings were judged to be material at this point. Therefore, the overall framework of China's capital regulation was graded "Compliant".