The Basel framework in 100 jurisdictions: implementation status and proportionality practices

The Basel framework sets minimum regulatory requirements for internationally active banks. This allows national authorities to tailor rules for smaller banks in their jurisdictions. In this paper, we explore the current state of implementation of key Basel standards and outline the associated proportionality practices, in 100 jurisdictions that are not members of the Basel Committee on Banking Supervision (BCBS). We find that all jurisdictions have adopted some version of the Basel risk-based capital regime, while most have implemented, in some manner, quantitative liquidity standards and the large exposures rule. In their implementation of Basel standards, nearly all jurisdictions apply proportionality, simplifying standards in some cases and applying more stringent requirements in others. As countries shift to the Basel III risk-based capital regime, more extensive proportionality strategies are applied.  This paper catalogues a range of proportionality practices applied in non-BCBS jurisdictions, providing a reference for authorities that seek to tailor the Basel framework to fit their country-specific circumstances.

JEL classification: G20, G21, G28