The Basel Committee on Banking Supervision (Basel Committee) has published a report that updates G20 leaders on progress and challenges in the implementation of the Basel III regulatory reforms since November 2015.
In summary, the report notes that the Basel III capital and liquidity standards have generally been transposed into domestic regulations within the time frame set by the Basel Committee. However, the Basel Committee also notes that a considerable number of revised Basel standards await transposition into domestic regulations over the next couple of years. While still committed to implementing these standards, some jurisdictions report challenges in meeting the agreed implementation deadlines. These include:
- margin requirements for non-centrally cleared derivatives (by September 2016);
- the revised Pillar 3 framework (by end-2016);
- the standardised approach for measuring counterparty credit risk (by January 2017);
- capital requirements for central counterparty exposures (by January 2017); and
- capital requirements for equity investments in funds (by January 2017).