Updated methodology for assessing compliance with capital standards published by the Basel Committee

The Basel Committee on Banking Supervision has today published an updated methodology for its jurisdiction-specific Regulatory Consistency Assessment Programme (RCAP).

The RCAP was initiated by the Basel Committee to promote full and consistent implementation of the Basel framework by its member jurisdictions. Importantly, the RCAP assessments help to highlight the potential of any gaps found in the regulatory regime to affect financial stability and the regulatory environment for internationally active banks.

The updated methodology reflects the enhancements made to the RCAP processes and procedures based on the lessons learned from the monitoring and assessment of implementation to date. The document presents an overall framework for assessing how consistently different jurisdictions are implementing the Basel standards and it provides guidance on the approaches and methodologies used under the RCAP.

Drawing on the Committee's experience with the RCAP and on other regulatory reform work, the document is designed for use by national regulatory authorities when conducting self-assessments. The updated version also includes the RCAP Questionnaire that is used by jurisdictions to assess the consistency of their rules with the Basel capital standards. The publication aims to help Basel Committee member jurisdictions, and other regulators and supervisors, to check and improve the alignment of their domestic regulations with the corresponding Basel standards.

The methodology will be updated periodically to reflect further refinements to the RCAP.