Brussels, 29/08/2013 (Agence Europe) - Of the 27 jurisdictions belonging to the Basel Committee on banking supervision, 25 have now issued their final regulation transposing the Basel III agreement on strengthening quality and bank capital.
Ahead of the G20 summit in St Petersburg on 5-6 September, the Bank for International Settlements (BIS) - which hosts the Basel Committee on banking supervision - has presented its fourth progress report on how member jurisdictions have transposed the Basel III agreement. Indonesia and Turkey are the two jurisdictions that have not finalised the legislative process. “The European Union and the United States issued final regulations in June and July 2013”, the report states (see EUROPE 10872).
According to analyses carried out on a sample of 200 establishments, half of which are active internationally, the banks continue to build capital and appear “well placed” to meet the full set of fully phased-in minimum Basel III capital requirements “ahead of the 2019 deadline”. The aggregate shortfall in optimal quality bank capital (CET1) continues to decrease and is now “well below half the aggregate annual profits of the industry (which in 2012 totalled over €400 billion”.
The committee identifies as one of its medium-term priorities the large variations revealed in the way banks value their assets according to the risks that these represent. (MB/transl.fl)