Review of all members' implementation of the LCR completed by the Basel Committee
18 October 2017
The Basel Committee on Banking Supervision today published assessment reports on the implementation of the Liquidity Coverage Ratio (LCR) in Australia, Brazil, Canada and Switzerland. The assessments, which were conducted as part of the Committee's Regulatory Consistency Assessment Programme (RCAP), indicate that the LCR regulations in each of these jurisdictions were found to be "Compliant" with the global Basel standards, the highest of the four possible grades.
With today's publications, the Basel Committee has completed its review of the implementation of the LCR for all member jurisdictions. During the assessments, more than 200 deviations from the Basel LCR framework were identified, the vast majority of which have already been rectified. Most of the remaining deviations were considered not material. Overall, the implementation of the LCR in all member jurisdictions has been assessed as either Compliant or Largely Compliant, one notch below the highest grade.
Stefan Ingves, Chairman of the Basel Committee and Governor of Sveriges Riksbank, said: "The completion of these assessments and the high level of international consistency achieved in implementing the LCR is testament to the ongoing commitment of Basel Committee members to implement the Basel III regulatory reforms. It is essential we maintain this momentum in implementing the rest of the Committee's post-crisis reforms."
The Basel Committee also published today its Thirteenth progress report on adoption of the Basel regulatory framework. This sets out the status of adoption of Basel III standards in the Committee's member jurisdictions, as of end-September 2017.
The Basel Committee will now begin assessing the consistency of implementation of the Net Stable Funding Ratio (NSFR) and the large exposures framework. Implementation of the NSFR is expected to begin from 1 January 2018 and the large exposures framework from 1 January 2019.
Notes to editors
The Basel Committee comprises 45 members from 28 jurisdictions, consisting of central banks and authorities with formal responsibility for the supervision of banking business. Additionally, the Committee has nine observers including central banks, supervisory groups, international organisations and other bodies. The Committee expanded its membership in 2009 and again in 2014. More information about the Basel Committee is available at www.bis.org/bcbs/about.htm.
The RCAP is a central element of the Basel Committee's continuing efforts to promote timely adoption of its standards and to monitor its members' full and consistent compliance with the Basel framework. More information on the programme is available on the Committee's website at www.bis.org/bcbs/implementation.htm.