RCAP on timeliness: Basel III implementation dashboard

The timely transposition of Basel III regulatory standards into domestic regulations is monitored periodically based on information provided by each member jurisdiction. The RCAP Implementation dashboard uses 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.

Basel III adoption progress summary (September 2022)

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 a 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 come into effect on 1 January 2023 with a five-year phase-in for some elements. Continuing the periodic monitoring initiated a decade ago, this update sets out the adoption status of Basel III standards for each of the BCBS member jurisdictions1  as of end-September 2022.2  It is part of the Committee's broader Regulatory Consistency Assessment Programme (RCAP), which was established to track progress in introducing the corresponding domestic regulations, assess their consistency and analyse regulatory outcomes.

Since the last update as of end-September 2021, further progress has been made in the adoption and implementation of the outstanding Basel III standards with an approaching deadline of January 2023.3  Namely, six additional member jurisdictions have adopted the revised standardised approach for credit risk, bringing the total to eight jurisdictions, and four additional member jurisdictions have adopted the revised internal ratings-based (IRB) approach, the revised operational risk framework and the output floor. Three additional member jurisdictions have adopted the revised credit valuation adjustment (CVA) framework, the revised minimum requirements for market risk, the revised leverage ratio (2017 exposure definition) and the G-SIB leverage ratio buffer. In total, more than 80% of member jurisdictions have published rules for at least one of these standards. As noted by GHOS members (Press release), more than two thirds of member jurisdictions plan to implement all, or the majority of, the standards in 2023 or 2024, with the remaining jurisdictions implementing them in 2025. Some of these have already published draft regulations for consultation.

For standards that are past due, seven more capital standard implementations have been completed, including two for the capital requirements for bank exposures to central counterparties (CCPs) and the total loss-absorption capacity (TLAC) holdings standard. For the disclosure standards, five more adoptions are observed, with a majority relating to the disclosure of the key metrics, the Net Stable Funding Ratio (NSFR) and interest rate risk in the banking book (IRRBB). Progress also continues in the implementation of the framework for domestic systemically important banks (D-SIBs) and the large exposures framework (LEX) as one more adoption is observed for each.

Table 1 below highlights the progress made since the last update by listing the standards with an increase in number of jurisdictions where final rules have been published or are in force. The shaded rows indicate standards for which the implementation is not yet due.

Table 1: Member jurisdictions that have issued final rules

A complete view by standard and jurisdiction is provided below. Prior progress updates and the full history of implementation for each jurisdiction can be viewed via the RCAP implementation dashboard. Further evaluation of the consistency of jurisdictional implementations is addressed through the RCAP jurisdictional assessments.

1 The status of implementation in Russia has not been updated and reflects progress only as of end-September 2021.

2 As recommended by the RCAP Review Task Force and approved by the Committee, the existing PDF version of the progress report has been replaced by an interactive web-based dashboard, which reflects the full implementation history. The implementation history has been reviewed by member jurisdictions, who in some cases have provided corrections to their implementation status as published in previous progress reports. Any corrections received after the publication date will be continuously reflected in the dashboard and full implementation history available for download.

3 As in previous progress reports, a jurisdiction is considered as having adopted a standard if a final rule is published and as having implemented a standard if a final rule has been published and is implemented by banks.