The Basel Committee on Banking Supervision has urged G20 Finance Ministers to renew their commitment to the completion of the Basel III regulatory reforms that aim to improve the regulation, supervision and risk management within the banking sector.
(G20 is a group of 19 major economies and the European Union.)
The Basel III regulatory reforms must be implemented consistently, expeditiously and completely, the Basel committee said in a report released on Friday.
Full, timely and consistent implementation of Basel III remains fundamental to building a resilient financial system, maintaining public confidence in regulatory ratios and providing a level playing field for internationally active banks, the report has said.
In this report, substantial progress can be observed with respect to adoption of Basel rules by the Basel Committee member jurisdictions, the strengthening of the capital base by internationally active banks and the finalisation of remaining post-crisis reforms that form part of the Basel regulatory framework.
upcoming meeting
The report will be considered at the upcoming meeting of G20 Finance Ministers and Central Bank Governors in Washington DC on April 18-19.
This report updates G20 Finance Ministers and Central Bank Governors on progress in adoption of Basel III regulatory reforms since the Basel committee on banking supervision issued its October 2012 report.
updates
The scope of this update is broader than the previous progress reports to the G20.
The Basel Committee’s Regulatory Consistent Assessment Programme, introduced in 2012, is helping advance and deepen the Basel III reform efforts.
The committee intends to finalise its work on the leverage ratio in 2013, and most if not all work on the net stable funding ratio, the trading book, securitisation and large exposures should be finished in 2014.
It remains essential that Basel framework be adopted and fully implemented in a timely manner, the report has said.
In addition to reporting on the steps taken by the Basel Committee member jurisdictions towards implementing the Basel III capital standards, the latest update also covers developments in other Basel III regulatory standards and banks’ progress in bolstering their capital bases.
The report also highlighted specific implementation-related shortcomings that are surfacing, which require continued policy and operational attention.
Basel Committee members had agreed to begin implementation of Basel III capital standards from January 1, 2013.