The Basel Committee on Banking Supervision (BCBS) has updated and published its eighth progress report on adoption of the Basel regulatory framework as of end-March 2015.
BCBS’ monitoring reports have been published semi-annually since 2011 and focus on the status of domestic rule-making processes to ensure that the Committee’s capital standards are implemented in jurisdictions according to internationally agreed timeframes.
The Basel III framework builds on and enhances the regulatory framework set out under Basel II and Basel 2.5.
Leverage ratio: In January 2014, the Basel Committee issued the Basel III leverage ratio framework and disclosure requirements following endorsement by its governing body, the Group of Central Bank Governors and Heads of Supervision (GHOS). Implementation of the leverage ratio requirements has begun with bank-level reporting to national supervisors and public disclosure on 1 January 2015.
Net stable funding ratio: In October 2014, the Basel Committee issued the final standard for the net stable funding ratio (NSFR). In line with the timeline specified in the 2010 publication of the liquidity risk framework, the NSFR will become a minimum standard by 1 January 2018. The monitoring of the status of adoption of the NSFR is planned to start with the next progress report in October 2015.
The only GCC company reviewed in the report was Saudi Arabia.
SAMA through its Circular # 351000133367 on 25 August 2014 issued its final guidance document on the Leverage Ratio disclosure requirements. The
aforementioned SAMA Circular is effective from January 2015.
The D-SIB framework has been finalised and the relevant regulation has
been issued for implementation by January 2016 through SAMA Circular # 351000138356 (issued in September 2014).
