Regulatory Consistency Assessment Programme (RCAP) - Assessment of Basel III risk-based capital regulations - Korea

September 2016

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 Korea. Overall, the domestic implementation of the risk-based capital framework is found to be "largely compliant" with the Basel standards, reflecting the fact that most but not all provisions of the Basel standards are satisfied. A "largely compliant" assessment grade is one notch below the highest possible grade. Specifically, 12 of the 14 components of the framework are assessed as compliant while two components - the definition of capital and the transitional arrangements - are assessed as largely compliant and "materially non-compliant", respectively.