Basel Committee Publishes Basel III Implementation Progress Report

The Basel Committee on Banking Supervision has published its third progress report on Basel III implementation. It is the Committee’s last report ahead of the globally agreed start date of 1 January 2013 for implementing Basel III, although the Committee will continue to provide updates through next year and beyond.

Stefan Ingves, chairman of the Basel Committee and governor of Sveriges Riksbank, Sweden’s central bank, said: “It is clear that not all jurisdictions will be ready in time. Still, we see continuing signs of progress.

“The Committee recently published three Level 2 assessment reports, which showed that further work is needed by some jurisdictions to close the gaps identified in their draft regulations. It is essential that all jurisdictions continue to press ahead and finalise regulations by the deadline or as soon as possible thereafter.”

The Basel III implementation review comprises the following three levels:

1. Level 1: ensuring the timely adoption of Basel III.
2. Level 2: regulatory consistency with Basel III.
3. Level 3: consistency of outcomes (initially focusing on risk-weighted assets (RWAs)).

The Committee published its first three Level 2 reports of the EU, Japan and the US. The Level 3 assessment of risk-weighted assets in the banking book and trading book will publish initial reports in late 2012 or early 2013.

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