Stefan Ingves: Basel III implementation – Progress, pitfalls, and prospects
Date
05/11/2014
An increasingly important part of the Basel Committee's work in the period ahead will be the follow-up and evaluation of how the Basel regulatory frameworks are applied at the national level. The consistent application of the frameworks in all countries is a precondition for them having the intended effect, that is to strengthen resilience in the banking system.
To contribute to this, the Basel Committee has established a special process, the Regulatory Consistency Assessment Programmes (RCAPs), to follow up and evaluate how the member states have introduced and are applying the frameworks nationally. The Governor of the Riksbank, Stefan Ingves, spoke about this process when, in his role as Chairman of the Basel Committee on Banking Supervision (BCBS), he participated in a conference arranged by the Association of Supervisors of Banks of the Americas, BCBS and the Financial Stability Institute in Lima, Peru, on 4 November 2014.
At the conference, Mr Ingves said that the evaluation work had only just begun, but had already had results. Mr Ingves said that the Basel Committee had so far evaluated how seven member states had introduced frameworks relating to the banks' capital and that this had led the states to correct their national regulations on a large number of points. He went on to say that making these evaluations had also led to clarifications of the Basel regulations.
He also pointed out that in the course of this work the Basel Committee has also compared how the banks calculate the risk-weighted assets. This has revealed that there are major differences between the banks and later this year the Committee will therefore present a number of policy proposals with the aim of reducing these differences.
Read the whole speech: Basel III implementation – Progress, pitfalls, and prospects
