BIS has recently published a report from its Basel Committee. It provides an update to the October 2019 report on the adoption of Basel Standards across each BCBS member jurisdiction as of May 2020.
The Committee note that since the previous report member jurisdictions have continued to make progress in implementing the Basel Standards whose deadlines have already passed, despite the priorities related to the Covid-19 pandemic.
In terms of final rules being issued across the member jurisdictions, numbers have increased since the previous report, by between one or two member jurisdictions per Standard. Noteworthy are final rules issued for: revised standardised approach for credit risk, revised IRB approach for credit risk, and revised operational risk framework – which at the date of the previous report had no member jurisdictions having issued final rules for these Standards, but which now have five member jurisdictions across the three Standards with final rules in place.
The Committee welcomes the overall progress being made in implementing these Standards, but also confirms its expectation of full, timely and consistent implementation of the Basel III post-crisis reforms and will continue to monitor implementation closely.
To free up operational capacity for banks as they respond to Covid-19, in March 2020 the Committee suspended all outstanding jurisdictional assessments planned for 2020 under the RCAP – the UK has yet to be assessed. The Committee plans to complete these reviews by mid-2022.
The UK has created and implemented final rules for all the Standards whose deadlines have passed to date, with the vast majority of these rules following the EU process.