Systemically important banks: Basel Committee publishes implementation assessments on frameworks

The Basel Committee on Banking Supervision has published today reports assessing the implementation of the Committee's frameworks for global and domestic systemically important banks (G-SIBs and D-SIBs). The Committee has evaluated the G-SIB and D-SIB frameworks in the five jurisdictions that are currently home to G-SIBs: China, the European Union, Japan, Switzerland and the United States. This is the first assessment to be conducted on a cross-jurisdictional basis, with these five jurisdictions being simultaneously assessed against the Basel framework.

These reports form part of a series of publications on Basel Committee members' implementation of Basel standards under the Committee's Regulatory Consistency Assessment Programme (RCAP). The RCAP assesses the consistency and completeness of a jurisdiction's adopted standards and the significance of any deviations from the Basel framework. The RCAP does not take account of a jurisdiction's bank supervision practices, nor does it evaluate the adequacy of regulatory capital for individual banks or a banking system as a whole.

G-SIB framework

Overall, the outcome of the assessment is positive. The implementation of the Basel G-SIB framework is found to be "compliant" in all five of the jurisdictions where G-SIBs are currently based. This is the highest of the four possible assessment grades.

D-SIB framework

Consistent with the principles-based nature of the Committee's D-SIB framework, the reports do not include a graded assessment of the implementation of the D-SIB principles. Instead, the reports outline the D-SIB frameworks implemented in China, the European Union, Japan, Switzerland and the United States. Overall, where detailed D-SIB frameworks have been implemented, those frameworks are found to be broadly aligned with the Committee's D-SIB principles, although there is some variation across these jurisdictions in the additional requirements and policy measures applied to D-SIBs.

Notes to editors

The Basel Committee on Banking Supervision consists of senior representatives of bank supervisory authorities and central banks. Member countries include Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, Spain, South Africa, Sweden, Switzerland, Turkey, the United Kingdom and the United States.

The RCAP is a central element of the Basel Committee's continuing efforts to promote timely adoption of its standards and to monitor its members' full and consistent compliance with the Basel framework. The RCAP also helps member jurisdictions identify deviations from the Basel framework, weigh the materiality of any deviations and undertake necessary reforms. Based on the findings of these assessments, many assessed jurisdictions have already amended their regulations to align them more closely with the Basel framework, thereby helping to promote global financial stability and a level playing field for internationally active banks.

The Basel Committee has previously published jurisdictional assessments of Australia, Brazil, Canada, China, the European Union, Hong Kong SAR, India, Japan, Mexico, Russia, Saudi Arabia, Singapore, South Africa, Switzerland, Turkey and the United States.