Basel Committee finds Japan compliant with its Net Stable Funding Ratio standard and largely compliant with its large exposures framework; updates Handbook for jurisdictional assessments

• Basel Committee publishes assessment reports on the implementation of its global standards in Japan.
• Assessments find Japanese regulations respectively compliant and largely compliant with the Basel Committee's Net Stable Funding Ratio standard and large exposures framework.
• Basel Committee also publishes an updated version of its Handbook for jurisdictional assessments.

Japan's implementation of the Net Stable Funding Ratio (NSFR) and large exposures framework (LEX) are respectively compliant and largely compliant with the global standards set by the Basel Committee on Banking Supervision, according to reports published today.

The Basel Committee's assessment reports on the NSFR and LEX form part of its Regulatory Consistency Assessment Programme (RCAP), a series of reports on the implementation of Basel standards by member jurisdictions of the Basel Committee.

The Basel Committee has completed its review of the implementation of the initial risk-based capital standards and Liquidity Coverage Ratio (LCR) for all member jurisdictions and of the framework for global and domestic systemically important banks (G-SIBs and D-SIBs) for all member jurisdictions that were home to G-SIBs in 2016. Jurisdictional assessments of NSFR and LEX global standards started in 2018 and resumed in late 2021 after being suspended in March 2020 following the outbreak of Covid-19.

The Basel Committee also published today an updated version of its Handbook for jurisdictional assessments. This reflects the outcome of the strategic review by the Committee of its RCAP and aims to enhance the effectiveness and efficiency of the programme. The updated version of the Handbook supersedes the previous version published by the Committee in March 2018.