The Basel Committee on Banking Supervision (BCBS) has reaffirmed its commitment to implement the Basel III framework in full, echoing the pledge made by the finance ministers and central bank governors of the G20 at their meeting in October this year. The committee promises that the implementation will be made “consistently and as soon as possible”.
The reaffirmation was announced following the committee’s meeting in Basel on 19 and 20 November 2024. The Basel III framework has been gradually phased in over a number of years. The Banking Package, which includes amendments to the Capital Requirements Regulation (CRR) and Capital Requirements Directive (CRD) entered into force in July this year. Next to come into force on 1 January 2025 will be the new prudential rules.
On another note
Other topics discussed during the BCBS meeting include counterparty risk management related to non-bank financial intermediation (NBFI), lessons learnt from the 2023 banking turmoil, macro-prudential policy, and climate related financial risks.
The first – counterparty risk management related to NBFI – is probably particularly of note to this publication. The committee has reviewed the comments received from an earlier consultation on counterparty risk management. A set of finalised guidelines based on the comments will be published next month to address “weaknesses in banks’ counterparty credit risk management exposed in recent episodes of NBFI distress”.
