Investment Operations

Further Progress Urged for Implementation of Basel III standards


The Basel Committee on Banking Supervision has issued the Fifteenth progress report on adoption of the Basel regulatory framework.

The report sets out the adoption status of Basel III standards for each Committee member jurisdiction as of end-September 2018. It includes the finalized Basel III post-crisis reforms published by the Committee in December 2017. These reforms will take effect from 1 January 2022.

As noted by the Committee’s oversight body, the Group of Central Bank Governors and Heads of Supervision, the Committee expects full, timely and consistent implementation of Basel III post-crisis reforms by member jurisdictions.

Analysts say that, since the last report published in April 2018, member jurisdictions have made progress in implementing standards whose deadline has already passed or is within the next six months. These include notably the leverage ratio, based on the existing exposure definition, the large exposures framework and the standard on interest rate risk in the banking book.

However, the report also shows that limited progress has been made on the implementation of other standards whose implementation deadlines have passed. These include notably the Net Stable Funding Ratio (NSFR), for which only 10 member jurisdictions have final rules in force.

The Committee urged member jurisdictions to strive for full, timely and consistent implementation of Basel III standards and will keep monitoring closely the implementation of these standards.