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The Basel Committee released their status update of progress in implementation the requirements under Basel III. While some progress is being made, there are still gaps. The Australian implementation still has gaps, especially around aspects of disclosure. Here is their summary. In 2012, the Committee started the Regulatory Consistency Assessment Programme (RCAP) to monitor progress … Continue reading “Basel III Implementation, Slow But Sure: BIS”
The Australian Prudential Regulation Authority (APRA) has continued to burnish its conservative credentials by being the first regulator to publish proposals to implement the Basel III endgame standard, also known as “Basel IV”, says Fitch Ratings. APRA proposes to implement a stricter variant of the international reforms published last December on an accelerated timeline. We … Continue reading “Australia Leads the Way on ‘Basel IV’, Banks Well Placed”
From Moody’s. Last Friday, the China Banking Regulatory Commission published for public comment a draft regulation of commercial banks’ large exposure management in accordance with the Basel Committee on Banking Supervision’s framework. The draft regulation is credit positive for banks because it will quantifiably curtail the shadow-banking practice of investing in structured products without risk-managing … Continue reading “China implements Basel Committee framework for controlling large exposures, curtailing bank risk”
From Moody’s. Last Thursday, the Basel Committee on Banking Supervision accredited covered bonds with low risk weights, closely following a precedent set by European regulation. A low risk weight is credit positive for issuing banks’ sales of covered bonds outside the European Union (EU) given the global application of the Basel rules. In Australia, covered … Continue reading “Basel Committee’s low risk weight for covered bonds is credit positive for issuing banks”
APRA has welcomed the Basel III announcement and expects to commence consultation on revisions to the ADI capital framework in early 2018. Despite the 2022 date, APRA also reaffirmed that Australian banks should be following strategies to increase their capital strength to exceed the unquestionably strong benchmarks by 1 January 2020. The Australian Prudential Regulation … Continue reading “APRA welcomes finalisation of Basel III bank capital framework”
The Bank for International Settlements has released the now agreed Basel III framework. Many of the measures will have a 2022 target implementation data. They will tend to lift capital requirements higher, and reduce the potential advantage of adopting advanced IRB models. Investment mortgage lending will attract higher weights. APRA will, we assume take account … Continue reading “Basel III Agreed [Finally]”
The Basel Committee published its latest status report on Basel III implementation to end-September 2017 – the 13th progress report. This includes a status report on Australia: There are areas (in red) where the deadline has passed, and as yet plans are not announced. Many other countries have red marks, but it is worth noting … Continue reading “Basel III Implementation Status In Australia”
The Basel Committee has published the results of its latest Basel III monitoring exercise based on data as of 31 December 2016. For the first time, the report provides not only global averages but also a regional breakdown for many key metrics. Data is included from 4 Australian “Group 1” banks and 1 “Group 2” … Continue reading “Banks Pass Basel III Hurdle”
Wayne Byers spoke at The American Chamber of Commerce in Australia Business Briefing on International standards and national interests. He described the current state of play with Basel III: Although the core components of Basel III – a strengthening of the framework for bank capital, liquidity and funding – was agreed in 2010, the final … Continue reading “APRA On Basel and Local Standards”
The Basel Committee on Banking Supervision has today issued the Twelfth progress report on adoption of the Basel regulatory framework. This included a status summary for Australian Banks and shows that there are substantial steps to be taken to complete the current implementation, yet alone responding to the APRA-led proposals for further capital reform, which … Continue reading “Basel III Status Update – Where Australia Stands”