The Basel Committee on Banking Supervision unanimously reaffirmed their expectation that participating countries implement all aspects of the Basel III framework in full, “consistently and as soon as possible,” the Bank for International Settlements recently announced.
Basel III is an international set of measures developed by the committee to strengthen regulation, supervision and risk management of banks. U.S. implementation of the Basel III framework stalled after banking agencies proposed establishing capital requirements far more stringent than what was recommended by the committee. While U.S. regulators have said they expect to make “broad and material” changes to the proposal, there are currently no plans to finalize the rulemaking before President-elect Trump takes office.
The Basel committee noted its recommendation came a month after the G20 finance ministers and central bank governors adopted a joint statement pledging to adopt the framework “in full, consistently and as soon as possible.”
