On 14 October 2021, the Basel Committee on Banking Supervision (BCBS) issued a progress report on the adoption of the Basel regulatory framework.
Basel III was developed by BCBS as an internationally agreed set of measures in response to the global financial crisis of 2007-2009. The measures within the regulatory framework aim to strengthen the regulation, supervision and risk management of banks.
The progress report sets out the jurisdictional adoption status of the Basel III standards as of end-September 2021. It covers the Basel III post-crisis reforms and the finalised minimum capital requirements for market risk. These reforms are due to take effect from 1 January 2023, as announced by the Governors and Heads of Supervision in March 2020.
Since the previous progress report, published in July 2020, BCBS member jurisdictions have made further progress in adopting the Basel III standards despite disruptions due to COVID-19 and the required shift in regulatory and supervisory priorities. In fact, many BCBS jurisdictions used the existing flexibilities in the framework to provide regulatory relief during the pandemic. All BCBS jurisdictions now have final rules in force for the countercyclical capital buffer.
The progress report also contains a table providing an overview of BCBS member implementation of the Basel III standards. It also contains tables showing implementation in each individual BCBS member jurisdiction.
The BCBS Regulatory Consistency Assessment Programme (RCAP) will monitor the progress in introducing corresponding domestic regulations, assessing their consistency and analysing regulatory outcomes. The outstanding RCAP on the net stable funding ratio and large exposures framework are expected to resume soon after they were suspended last year in response to COVID-19.