Consultation on consolidated global banking regulation standards

The Basel Committee on Banking Supervision (BCBS) is consulting on plans for a consolidated version of its global standards for the regulation and supervision of banks, with the aim of making the standards more accessible and promoting their consistent global interpretation and implementation

The publication of the standards in the new format has focused on reorganising existing requirements, not introducing new ones.

Basel standards are currently published on the committee's section of the website of the Bank for International Settlements (BIS), as a series of pdf documents. These publications may replace prior standards, amend existing standards or introduce new ones.

The committee says the current publication format, combined with the expanded scope of the Basel framework in recent years, make it difficult for website users to find the standards that are currently in force, or track how the framework has developed over time and will develop in the future. Its consolidated Basel framework is designed to address these issues.

However, the committee says the preparation of the framework revealed certain inconsistencies between Basel requirements as well as ambiguities that need to be addressed through minor policy changes.

There was no intention to introduce new requirements or otherwise amend the standards previously agreed and published by the Basel committee. In preparing the framework, the committee has taken the opportunity to simplify the standards where possible, clarify provisions known to cause confusion, integrate answers to frequently asked questions (FAQs) and delete redundant review clauses and other outdated provisions.

As the technical amendments proposed in the consultative document are not substantial in nature and, in the committee's view, contribute to a more coherent prudential framework, the committee will encourage its members to implement the final requirements as soon as possible, and no later than 1 January 2022.

The framework has been published initially in draft form, together with a consultative document to gather feedback on the website and on various proposed technical amendments to the standards.

The consultation closes for comment on 9 August.

Consolidated Basel framework consultation

By Pat Sweet

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