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16 June 2016

Systemically important banks: Basel Committee publishes implementation assessments on frameworks

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This is the first assessment to be conducted on a cross-jurisdictional basis, with these five jurisdictions being simultaneously assessed against the Basel framework.

The Basel Committee on Banking Supervision has published 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.

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.

Press release

Basel III Regulatory Consistency Assessment Programme (RCAP) - Handbook for jurisdictional assessments (March 2016)

Global systemically important banks: updated assessment methodology and the higher loss absorbency requirement (July 2013)

A framework for dealing with domestic systemically important banks - final document (October 2012)

Global systemically important banks: Assessment methodology and the additional loss absorbency requirement

Assessment – China

Assessment – EU

Assessment – Japan

Assessment – Switzerland

Assessment – US


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