In 2012, the Basel Committee on Banking Supervision (Basel Committee) established the Regulatory Consistency Assessment Programme (RCAP). By means of the RCAP, the Basel Committee’s purpose is to ensure the consistent implementation of the Basel III framework. The programme has two distinct but complementary parts: the first is based on self-reporting and is to monitor the timely adoption of Basel III standards. The second has two elements – jurisdictional peer reviews and thematic assessments of regulatory outcomes in order to assess the consistency and completeness of the adopted standards.
The Basel Committee has now published the Handbook for jurisdictional assessments. This publication focuses on the jurisdictional peer reviews. The information presented in the Handbook covers the general framework as well as specific processes and procedures for assessing a jurisdiction’s regulatory framework for:
- risk-based capital standards;
- the liquidity coverage ratio; and
- global systemically important banks.