The Basel Committee on Banking Supervision (BCBS) has published a report assessing the implementation of the Basel III capital framework in:

  • the United States; and
  • the nine EU Member States which are members of the BCBS.

The assessment of EU Member States was based on the Capital Requirements Regulation, the Capital Requirements Directive IV and the relevant national rules in place. The BCBS found that most of the components met the minimum provisions of the Basel III requirements although two components were assessed to be “non-compliant”. The Internal Ratings-based approach for credit risk was assessed to be “materially non-compliant”. Another component found to be non-compliant related to the EU’s counterparty credit risk framework, which provides an exemption from the Basel III framework’s credit valuation adjustment capital charge for certain derivative exposures.

The BCBS noted that the US has implemented the Advanced Measurement Approaches for operational risk and opted to not implement the simpler approaches. The BCBS also found that two components – the securitisation framework and the standardised approach for market risk – were assessed as “materially non-compliant”.

View Assessment of Basel III regulations – European Union, 5 December 2014

View Assessment of Basel capital regulations in the United States concluded by the Basel Committee, 5 December 2014