RCAP on timeliness: monitoring reports and dashboards

The timely transposition of Basel III regulatory standards into domestic regulations is monitored periodically based on information provided by each member jurisdiction. The monitoring reports and going forward dashboards use a combination of numerical grades and colour codes to signal the different stages of adoption of the standards. The aim is to ensure that the internationally agreed timeline remains on track.

Latest monitoring report (October 2021)

Progress report on adoption of the Basel regulatory framework

This updated progress report provides a high-level view of Basel Committee members' progress in adopting the Basel III standards as of end-September 2021.

The Basel Committee on Banking Supervision (BCBS) and its oversight body, the Group of Central Bank Governors and Heads of Supervision (GHOS) have set as high priority the full, timely and consistent implementation of all aspects of the Basel III framework. This includes the finalised Basel III post-crisis reforms published by the Committee in December 2017 and set to go into effect on 1 January 2023 with a five-year phase-in. Continuing the periodic monitoring initiated a decade ago, this report sets out the adoption status of Basel III standards for each of the BCBS member jurisdictions as of end-September 2021. It is part of the broader Committee's Regulatory Consistency Assessment Programme (RCAP) established to monitor progress in introducing corresponding domestic regulations, assessing their consistency and analysing regulatory outcomes.

Despite the disruptions resulting from Covid-19 and the required shift in regulatory and supervisory priorities, further progress has been made in the implementation of the Basel III standards especially those with deadlines that have already passed. In fact, many jurisdictions used the existing flexibilities in the Basel framework to provide regulatory relief during the pandemic. All jurisdictions now have final rules in force for the countercyclical capital buffer (CCyB). Overall, in respect of the outstanding capital standards there have been 11 new adoptions. This includes three additional jurisdictions which have adopted final rules with regard to total loss-absorbing capacity (TLAC), and two additional jurisdictions which have adopted final rules with regard to the standardised approach for measuring counterparty credit risk exposure (SA-CCR) and capital requirements for equity investments in funds. An additional four jurisdictions have adopted the Net Stable Funding Ratio (NSFR) standard. Further, across the disclosure parts of the framework there have been seven additions. In respect of the Basel III standards which have a deadline in the future, there have been new adopters of the revised operational risk framework and revised standardised approach for credit risk.

The report excludes standards that had previously been implemented by all jurisdictions such as the Liquidity Coverage Ratio (LCR) and capital conservation buffers (CCoB) and is based on Basel adoption status updates submitted by jurisdictions as of end-September 2021. A complete view by standard and jurisdiction is provided in the Overview section followed by summary information about the implementation status and adoption plans for each of the 27 jurisdictions and the EU. Table 1 below highlights the progress made since the last report published in July 2020 by listing the standards with an increase in the number of jurisdictions with final rules in place. The shaded area indicates the standards with deadlines in the future.

Table 1: Member jurisdictions that have issued final rules

Further evaluation of the consistency of jurisdictional implementation is addressed through the RCAP assessments. The outstanding RCAP on NSFR and large exposures framework (LEX) are expected to resume soon after they were suspended last year in response to Covid-19.