Basel Committee completes its review of the regulatory treatment of sovereign exposures without changes to current rules and publishes discussion paper

The Basel Committee's oversight body, the Group of Central Bank Governors and Heads of Supervision (GHOS), mandated the Committee to review the regulatory treatment of sovereign risk in January 2015. The Basel Committee has now completed its review and is today publishing a discussion paper on The regulatory treatment of sovereign exposures.

The Committee is of the view that the issues raised by its review and the potential ideas outlined in the discussion paper are important, and could benefit from a broader discussion. However, the Committee has not reached a consensus on making any changes to the regulatory treatment of sovereign exposures at this stage, and has therefore decided not to consult on the ideas presented in the discussion paper. The views of interested stakeholders will nevertheless be useful in informing the Committee's longer-term thinking on this issue.