Basel Committee reports global progress on Basel III but limited NSFR adoption

The Basel Committee on Banking Supervision today issued the Sixteenth progress report on adoption of the Basel regulatory framework. As noted by the Group of Central Bank Governors and Heads of Supervision (GHOS), the Committee’s oversight body, its members expect full, timely and consistent implementation of the finalised Basel III reforms by member jurisdictions. 

The progess report sets out the adoption status of Basel III standards for each Committee member jurisdiction as of end-March 2019. It includes the Basel III post-crisis reforms published by the Committee in December 2017 and the finalised market risk framework published in January 2019. These reforms will take effect from 1 January 2022. 

Since the previous report, published in October 2018, member jurisdictions have made further progress in implementing standards for which the deadlines have already passed. These include, notably, the revised securitisation framework and the leverage ratio based on the existing (2014) exposure definition. 

However, the report also shows that progress has been limited in the implementation of other standards, which in a number of jurisdictions have yet to be finalised and put into effect. These include the Net Stable Funding Ratio (NSFR), for which final rules are in force in only 11 member jurisdictions, although this standard took effect on 1 January 2018. 

The Committee will continue to closely monitor the implementation of Basel standards including the finalised Basel III reforms.

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