RCAP Thematic assessments: consistency of bank outcomes
The Basel Committee's assessments of regulatory outcomes seek to ensure that the prudential ratios calculated by banks are consistent across banks and jurisdictions. The Committee's initial focus is on banks' calculation of risk-weighted assets (RWA, or the denominator of the Basel risk-based capital ratio) for credit risk, counterparty credit risk and market risk.
Differences in the application of the standards can lead to variations in the risk-based capital ratios. Therefore, thematic assessments distinguish between variations in RWA based on risks and those based on practices. The Basel reforms introduced changes to the RWA framework which are yet to be fully implemented before any consistency assessment could be performed.