Basel Committee: Implementation Timeline to Stay on Track

U.S. banks may have ""received an extension"":https://themreport.com/articles/agencies-announce-delay-of-basel-iii-implementation-2012-11-12 on their deadline to implement Basel III regulations, but that isn't stopping the global community from introducing reforms at the start of 2013.

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The ""Basel Committee on Banking Supervision"":http://www.bis.org/bcbs/index.htm?ql=1 met December 13-14 to discuss the progress of member nations in implementing the new capital adequacy requirements in Basel III. While a handful of jurisdictions--including the European Union, Korea, Russia, and the United States--are only in the draft stage, the majority of jurisdictions have published the final set of rules to go into effect January 1, 2013.

Turkey is expected to draft regulations in early 2013.

The new accord requires banks to raise their capital reserves to better ""absorb shocks arising from financial and economic stress, whatever the source,"" according to the Bank for International Settlements' ""website"":http://www.bis.org/index.htm. Basel III also includes the implementation of other rules designed to strengthen the industry's regulatory framework.

The globally agreed timeline includes several milestones to be reached between 2013 and 2019. While certain members may be getting more time to create finalized rules, that doesn't mean the entire implementation timeline will be shifted.

""It is expected that as remaining jurisdictions finalise their domestic regulations during 2013, they will incorporate all the remaining transitional deadlines in line with the original global agreement, even where they have not been able to meet the 1 January 2013 start date,"" said Stefan Ingves, chairman of the Basel Committee and governor of Sveriges Riksbank. ""Hence, by the end of 2013, almost all Basel Committee jurisdictions will be implementing Basel III in accordance with the agreed timetable.""