Regulatory Consistency Assessment Programme (RCAP) - Follow-up assessment of Basel III risk-based capital regulations - Japan

Through its Regulatory Consistency Assessment Programme (RCAP), the Basel Committee monitors the timely adoption of regulations by its members, assesses their consistency with the Basel framework and analyses the quality of intended regulatory outcomes. The RCAP also helps member jurisdictions to identify deviations from the Basel framework and assesses their materiality. 

This report describes the Committee's first follow-up assessment. The Japanese risk-based capital framework was initially assessed in 2012. Since then, the Japanese authorities have addressed some of the findings from the first assessment, by introducing regulations on capital buffers and loss absorbency for regulatory capital instruments. Overall, the Japanese risk-based capital framework is assessed as "compliant", the highest possible grade and one which is unchanged from the previous assessment.