Basel Committee on Banking Supervision. Eleventh progress report on adoption of the Basel regulatory framework

Transcription

1 Basel Committee on Banking Supervision Eleventh progress report on adoption of the Basel regulatory framework October 2016

2 This publication is available on the BIS website ( Bank for International Settlements All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISBN

3 Contents Introduction... 1 Status of adoption of Basel III... 2 Scope... 2 Methodology... 4 Overview table... 5 Progress report on adoption of the Basel regulatory framework

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5 Progress report on adoption of the Basel regulatory framework Introduction This report sets out the adoption status of Basel III for each Basel Committee on Banking Supervision (BCBS) member jurisdiction as of end-september It updates the Committee s previous progress reports which have been published on a semiannual basis since October In 2012, the Committee started the Regulatory Consistency Assessment Programme (RCAP) to monitor progress in introducing domestic regulations, assessing their consistency and analysing regulatory outcomes. 2 As part of this programme, the Committee periodically monitors (since October 2011) the adoption status of the risk-based requirements and (since October 2013) of the requirements for systemically important banks (SIBs), the liquidity coverage ratio (LCR) and the leverage ratio. 3 In October 2015, the Committee extended its monitoring of the adoption progress to all Basel III, which will become effective by As of end-september 2016, all 27 member jurisdictions have final risk-based rules, LCR regulations and conservation buffers in force. 26 member jurisdictions have issued final rules for the countercyclical buffers, 25 have issued final or draft rules for their domestic SIBs framework and 18 have issued final or draft rules for margin requirements for non-centrally. With regard to the global SIBs framework, all members that are home jurisdictions to G-SIBs have the final framework in force. While members are now turning to the implementation of other Basel III, including the leverage ratio and the net stable funding ratio (NSFR), some member jurisdictions report challenges in meeting the agreed implementation deadlines for some. These include the revised Pillar 3 framework (by end-2016), the standardised approach for measuring counterparty credit risk (by January 2017), requirements for central counterparty (CCP) exposures (by January 2017) and requirements for equity (by January 2017). Regarding the consistency of regulatory implementation, the Committee has published its assessment reports on 26 members Argentina, Australia, Brazil, Canada, China, nine members of the European Union, Hong Kong SAR, India, Japan, Korea, Saudi Arabia, Mexico, Russia, Singapore, South Africa, Switzerland, Turkey and the United States regarding their implementation of Basel risk-based regulations. These reports are available on the Committee s website. The Committee has also published nine assessment reports Argentina, Hong Kong SAR, India, Korea, Mexico, Russia, Saudi Arabia, Turkey and South Africa on the domestic adoption of the Basel LCR. Further, assessments of implementation of the Basel G-SIB framework were published in June 2016, covering the five jurisdictions 1 Previous progress reports are available at One of the responsibilities of member jurisdictions is to implement the BCBS within the timeframe established by the Committee and to undergo and participate in BCBS reviews to assess the consistency of domestic rules and supervisory practices in relation to BCBS (see the BCBS Charter of January 2013, 2 See BCBS, Basel III Regulatory Consistency Assessment Programme: Handbook for jurisdictional assessments, March 2016, 3 For jurisdictions that are not members of the Committee, the Financial Stability Institute (FSI) of the Bank for International Settlements published the results of its survey on Basel III s adoption status in July See FSI, FSI Survey Basel II, 2.5 and III implementation, July 2015, Progress report on adoption of the Basel regulatory framework 1

6 that are currently home to G-SIBs. 4 An assessment of the implementation of the risk-based and LCR in Indonesia is underway, as are assessments of the consistency of implementation of the LCR in Japan, Singapore and the United States. The Committee aims to have assessed the consistency of risk-based and LCR of all 27 member jurisdictions by end-2016 and end respectively. Regarding the analysis of consistency of regulatory outcomes, the Committee published a second report on the regulatory consistency of risk-weighted assets in the banking book in April This complements the four previous reports on RWA variability in credit risk, counterparty credit risk and market risk portfolios. In addition, the Committee consulted in March 2016 on proposed changes to the internal ratings-based approach (IRB) aimed at reducing variation in credit risk-weighted assets. 6 Status of adoption of Basel III Scope The Basel III framework builds on and enhances the regulatory framework set out under Basel II and Basel 2.5. The structure of the attached table has been revamped (effective from October 2015) to monitor the adoption progress of all Basel III, which will come into effect by The monitoring table no longer includes the reporting columns for Basel II and 2.5. The attached table therefore reviews members regulatory adoption of the following : Basel III Capital: In December 2010, the Committee released Basel III, which set higher levels for requirements and introduced a new global liquidity framework. Committee members agreed to implement Basel III from 1 January 2013, subject to transitional and phase-in arrangements. o o o o o Capital conservation buffer: The conservation buffer is phased in between 1 January 2016 and year-end 2018, becoming fully effective on 1 January Countercyclical buffer: The countercyclical buffer is phased in parallel to the conservation buffer between 1 January 2016 and year-end 2018, becoming fully effective on 1 January investment in funds: In December 2013, the Committee issued the final standard for the treatment of banks investments in the equity of funds that are held in the banking book, which will take effect from 1 January Standardised approach for measuring counterparty credit risk exposures (SA-CCR): In March 2014, the Committee issued the final standard on SA-CCR, which will take effect from 1 January It will replace both the Current Exposure Method (CEM) and the Standardised Method (SM) in the adequacy framework, while the IMM (Internal Model Method) shortcut method will be eliminated from the framework. Securitisation framework: The Committee issued revisions to the securitisation framework in December 2014 and July 2016 to strengthen the for 4 These reports on China, the EU, Japan, Switzerland and the US are available at 5 Reports are available at 6 Consultation document is available at 2 Progress report on adoption of the Basel regulatory framework

7 securitisation exposures held in the banking book, which will come into effect in January o Margin requirements for non-centrally : In September 2013, the Committee issued the final framework for margin requirements for non-centrally cleared derivatives. Subsequently, in March 2015, the Committee published a revised version. Relative to the 2013 framework, the revised version changes the beginning of the phasein period for collecting and posting initial margin on non-centrally cleared trades from 1 December 2015 to 1 September The full phase-in schedule has been adjusted to reflect this nine-month change in implementation. The revisions also institute a sixmonth phase-in of the requirement to exchange variation margin, beginning 1 September o Capital requirements for bank exposures to central counterparties: In April 2014, the Committee issued the final standard for the treatment of bank exposures to central counterparties, which will come into effect on 1 January Basel III leverage ratio: In January 2014, the Basel Committee issued the Basel III leverage ratio framework and disclosure requirements. Implementation of the leverage ratio requirements began with bank-level reporting to national supervisors until 1 January 2015, while public disclosure started on 1 January The Committee will carefully monitor the impact of these disclosure requirements. Any final adjustments to the definition and calibration of the leverage ratio will be made by 2017, with a view to migrating to a Pillar 1 (minimum requirements) treatment on 1 January 2018 based on appropriate review and calibration. Basel III liquidity coverage ratio (LCR): In January 2013, the Basel Committee issued the revised LCR. It came into effect on 1 January 2015 and is subject to a transitional arrangement before reaching full implementation on 1 January Basel III net stable funding ratio (NSFR): In October 2014, the Basel Committee issued the final standard for the 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 G-SIB framework: In July 2013, the Committee published an updated framework for the assessment methodology and higher loss absorbency requirements for G-SIBs. The requirements came into effect on 1 January 2016 and become fully effective on 1 January To enable their timely implementation, national jurisdictions agreed to implement by 1 January 2014 the official regulations/legislation that establish the reporting and disclosure requirements. D-SIB framework: In October 2012, the Committee issued a set of principles on the assessment methodology and the higher loss absorbency requirement for domestic systemically important banks (D-SIBs). Given that the D-SIB framework complements the G-SIB framework, the Committee believes it would be appropriate if banks identified as D-SIBs by their national authorities were required to comply with the principles in line with the phase-in arrangements for the G-SIB framework, ie from January Pillar 3 disclosure requirements: In January 2015, the Basel Committee issued the final standard for revised Pillar 3 disclosure requirements, which will take effect from end-2016 (ie banks will be required to publish their first Pillar 3 report under the revised framework concurrently with their year-end 2016 financial report). The standard supersedes the existing Pillar 3 disclosure 7 In January 2014, the Committee issued final requirements for banks LCR-related disclosures. Banks are required to comply with these requirements from the date of the first reporting period after 1 January In June 2015, the Committee issued final requirements for banks NSFR-related disclosures. Banks are required to comply with these requirements from the date of the first reporting period after 1 January Progress report on adoption of the Basel regulatory framework 3

8 requirements first issued as part of the Basel II framework in 2004 and the Basel 2.5 revisions and enhancements introduced in Large exposures framework: In April 2014, the Committee issued the final standard that sets out a supervisory framework for measuring and controlling large exposures, which will take effect from 1 January Methodology The information contained in the following table is based on responses from Basel Committee member jurisdictions, and reports the status as of end-september The following classification is used for the adoption status of Basel regulatory rules: 1. Draft regulation not published: no draft law, regulation or other official document has been made public to detail the planned content of the domestic regulatory rules. This status includes cases where a jurisdiction has communicated high-level information about its implementation plans but not detailed rules. 2. Draft regulation published: a draft law, regulation or other official document is already publicly available, for example for public consultation or legislative deliberations. The content of the document has to be specific enough to be implemented when adopted. 3. Final rule published: the domestic legal or regulatory framework has been finalised and approved but is still not implemented by banks. 4. Final rule in force: the domestic legal and regulatory framework has been published and is implemented by banks. In order to support and supplement the status reported, summary information about the next steps and the adoption plans being considered are also provided for each jurisdiction. 9 In addition to the status classification, a colour code is used to indicate the adoption status of each jurisdiction. 10 The colour code is used for those Basel components for which the agreed adoption deadline has passed. 9 Links to domestic implementation documents are available at 10 Green = adoption completed; yellow = adoption in process (draft regulation published); red = adoption not started (draft regulation not published). N/A: Not applicable. 4 Progress report on adoption of the Basel regulatory framework

9 Overview table Number code: 1 = draft regulation not published; 2 = draft regulation published; 3 = final rule published (not yet implemented by banks); 4 = final rule in force (published and implemented by banks). Standards for which the agreed implementation deadline has passed receive a colour code to reflect the status of implementation: Green = adoption completed; yellow = adoption in process (draft regulation published); red = adoption not started (draft regulation not published). N/A: Not applicable. Country Basel BCBS agreed date of implementation Status Remarks Argentina Definition of Jan Final rule published on 9 November 2012 and in force from 1 February Capital conservation buffer Jan Final rule published on 11 November 2015 and in force from 1 January 2016 (Section 4.1 Communication A 5827). Countercyclical buffer Jan Final rule published on 11 November 2015 and in force from 1 January 2016 (Section 4.2 Communication A 5827). Jan Draft regulation not published. SA-CCR Jan Draft regulation not published. Securitisation framework Jan Draft regulation not published. Sept Draft regulation not published. Exchange of variation margins would not be required until March 2017 given the low volume traded in the Argentinean market. Capital requirements for CCPs Jan Draft regulation not published. coverage ratio (LCR) Jan Final rule published on 8 January 2015 and in force from 30 January LCR disclosure requirements Jan Final rule published on 30 March 2015 and in force from 31 March Net stable funding ratio (NSFR) Jan Draft regulation not published. NSFR disclosure requirements Jan Draft regulation not published. Leverage ratio Jan Final rule published in July 2014 and expected to be in force from 1 January Leverage ratio disclosure requirements Jan Final rule published on 18 July 2014 and in force from 31 March G-SIB requirements Jan 2016 N/A BCRA is not home supervisor to any G-SIBs. D-SIB requirements Jan Final rule published in January 2015 and in force from 1 Jan Pillar 3 disclosure requirements Dec Draft regulation not published. Large exposures Jan Draft regulation not published. Progress report on adoption of the Basel regulatory framework 5

10 Australia Brazil Definition of Jan Final rule published on 28 September 2012 and in force from 1 January Capital conservation buffer Jan Final rule published on 28 September 2012 and in force from 1 January Countercyclical buffer Jan Final rule published on 28 September 2012 and in force from 1 January Jan Draft rule expected to be published in SA-CCR Jan Draft rule published on 15 September Securitisation framework Jan Draft rule published on 26 November Final rule to be published in Sept Final rule published on 17 October Capital requirements for CCPs Jan Draft rule published on 15 September coverage ratio (LCR) Jan Final rule published on 20 December 2013 and in force from 1 January LCR disclosure requirements Jan Final rule published on 8 May 2015 and in force from 1 July Net stable funding ratio (NSFR) Jan Draft rule published on 29 September NSFR disclosure requirements Jan Draft rule expected to be published in Leverage ratio Jan Draft rule expected to be published in Leverage ratio disclosure requirements Jan Final rule published on 8 May 2015 and in force from 1 July G-SIB requirements Jan No Australian bank is on the current list of G-SIBs, although the four Australian D-SIBs fall under the public G-SIB disclosure framework. Final rule for the G-SIB disclosures for the four Australian D-SIBs published on 8 May 2015 and in force from 1 July D-SIB requirements Jan Final rule published on 23 December 2013 and in force from 1 January Pillar 3 disclosure requirements Dec Draft rule expected to be published in Large exposures Jan Draft rule expected to be published in late 2016 or early Definition of Jan Final Basel III rule approved in March 2013 and in force from 1 October Capital conservation buffer Jan Final rule published in March 2013 and in force from 1 October Countercyclical buffer Jan Final rule published in March 2013 and in force from 1 October Jan Final rule published and in force from 1 October SA-CCR Jan Draft rule is under development. Securitisation framework Jan Final rule expected to be published in December Progress report on adoption of the Basel regulatory framework

11 Canada Sept Draft rule expected to be published in The expected implementation date may be altered depending on the outcomes of studies underway. Capital requirements for CCPs Jan Final rule expected to be published in December coverage ratio (LCR) Jan Final rule published in February 2015 and in force since 1 October LCR disclosure requirements Jan Final rule published in February 2015 and in force since 1 October Net stable funding ratio (NSFR) Jan Final rule expected to be published in June NSFR disclosure requirements Jan Final rule expected to be published in June Leverage ratio Jan Final rule published in February 2015 and in force since 1 October Leverage ratio disclosure requirements Jan Final rule published in February 2015 and in force since 1 October G-SIB requirements Jan No G-SIB in Brazil although some fall under the public G-SIB disclosure framework. The final rules for disclosure came into force in March D-SIB requirements Jan Final rule published in October 2015 and in force since 1 January Pillar 3 disclosure Dec Draft rule is under development. The Central Bank of Brazil is planning to combine phases 1 and 2 of the BCBS review of Pillar 3 framework. Large exposures Jan Final rule expected to be published in December Definition of Jan Final rule in force from Q Requiring banks to meet an all-in basis thereby meeting 2019 levels but phasing out non-qualifying instruments. Capital conservation buffer Jan Final rule in force from Q Countercyclical buffer Jan Final guidance published in October 2016 for implementation on 1 November 2016 Jan Final guidance published in October 2016 for implementation on 1 November SA-CCR Jan Draft rule is expected to be published in 2017 for implementation in Securitisation framework Jan Draft guidelines and consultation in early 2017 for implementation in November 2017 Sept Final rules published in February 2016 and implemented in September Capital requirements for CCPs Jan Final guidance published in October 2016 for implementation on 1 November coverage ratio (LCR) Jan Final guidance issued in May 2014 and in force from 1 January LCR disclosure requirements Jan Final LCR public disclosure guidance issued for D-SIBs in July 2014 and in force beginning with fiscal Q reporting (February to April 2015 reference period). Net stable funding ratio (NSFR) Jan Public consultation is expected in late 2016 and final publication in early 2017 for implementation in Progress report on adoption of the Basel regulatory framework 7

12 NSFR disclosure requirements Jan Currently developing draft guidance for publication. Reporting starts Leverage ratio Jan Final guidance issued and in force. Domestic leverage test replaced by Basel III leverage ratio, effective in Q Leverage ratio disclosure requirements Jan Final guidance issued and in force in Q G-SIB requirements Jan Final rules issued and additional supervisory expectations and disclosure obligations in effect. D-SIB requirements Jan Final rules issued and additional supervisory expectations and disclosure obligations in effect. Pillar 3 disclosure requirements Dec Currently developing draft guidance for publication. Large exposures Jan In progress. China Definition of Jan Final rule published on June 2012 and in force from January Capital conservation buffer Jan Final rule published on June 2012 and in force from January Countercyclical buffer Jan , 1 (4) High-level principles published in June 2012 and in force from January 2013; and (1) Detailed policy framework is under development. Jan framework is under development. SA-CCR Jan SA-CCR policy framework is under development. Securitisation framework Jan The new securitisation framework is under development. Sept Policy framework on margin requirements is under development. Capital requirements for CCPs Jan The new CCPs framework is under development. coverage ratio (LCR) Jan Final rule published in February 2014 and in force since 1 March LCR disclosure requirements Jan Final rule published in Dec 2015 and in force since 31 Dec Net stable funding ratio (NSFR) Jan The NSFR policy framework is under development. NSFR disclosure requirements Jan The disclosure requirements for the NSFR framework is under development. Leverage ratio Jan Revised rules adopting amendments to the Basel III leverage ratio and disclosure requirements were published in January 2015 and are already in effect. Leverage ratio disclosure requirements Jan Revised rules adopting amendments to the Basel III leverage ratio and disclosure requirements were published in January 2015 and are already in effect. G-SIB requirements Jan Guidelines on the disclosure of GSIB assessment indicators already published and in force from February Progress report on adoption of the Basel regulatory framework

13 The G-SIB surcharge is specified in The Capital Rules for Commercial Banks (published in June 2012 and in force from January 2013). Hong Kong SAR D-SIB requirements Jan , 1 (4) The high-level principles and D-SIB surcharge of 1% has been established in The Capital Rules for Commercial Banks (published in June 2012 and in force from January 2013); and (1) Detailed policy framework for D-SIBs is under development. Pillar 3 disclosure requirements Dec Under development. The CBRC is planning to combine phases 1 and 2 of the BCBS review of Pillar 3 framework. Large exposures Jan Policy framework for large exposures is under development. Definition of Jan Final rule on minimum and associated disclosure requirements published on 19 October 2012 and 12 April 2013, and in force from 1 January 2013 and 30 June 2013, respectively. Capital conservation buffer Jan Final rule on buffers and associated disclosure requirements published on 24 October 2014 and 24 December 2014, and in force from 1 January 2015 and 31 March 2015, respectively. Countercyclical buffer Jan Final rule on buffers and associated disclosure requirements published on 24 October 2014 and 24 December 2014, and in force from 1 January 2015 and 31 March 2015, respectively. Jan Draft rule expected to be published in SA-CCR Jan Draft rule expected to be published in Securitisation framework Jan Draft rule expected to be published in Sept Final rule is expected to be published in the fourth quarter of Capital requirements for CCPs Jan Draft rule expected to be published in coverage ratio (LCR) Jan Final rule on LCR published on 24 October 2014 and in force from 1 January LCR disclosure requirements Jan Final rule specifying disclosure requirements for the LCR published on 24 December 2014 and in force from 31 March Net stable funding ratio (NSFR) Jan Draft rule expected to be published in NSFR disclosure requirements Jan Draft rule expected to be published in Leverage ratio Jan Bank-level reporting of leverage ratio has already started from reporting date of year ended 31 December Progress report on adoption of the Basel regulatory framework 9

14 Leverage ratio disclosure requirements Jan Final rule incorporating disclosure requirements in respect of the leverage ratio published on 24 December 2014 and in force from 31 March G-SIB requirements Jan Final rule on G-SIB requirements and associated disclosure requirements published on 24 October 2014 and 24 December 2014, and in force from 1 January 2015 and 31 March 2015, respectively. D-SIB requirements Jan Final rule on D-SIB requirements published on 24 October 2014 and in force from 1 January Guideline on the assessment methodology for identifying systemically important banks in Hong Kong was finalised on 18 February Pillar 3 disclosure requirements Dec Draft rule expected to be published in India Large exposures Jan Consultation paper issued on 22 March Definition of Jan Final Basel III rule was published in May 2012 and has been implemented since April Capital conservation buffer Jan Final rule in force from 31 March Countercyclical buffer Jan Final rule in force from 5 February Jan Not relevant for India as equity investment in funds are not held in the banking book. SA-CCR Jan Draft regulations published. Securitisation framework Jan Sept A discussion paper was published in May However, implementation has been deferred for the time being. Capital requirements for CCPs Jan Draft regulations published. coverage ratio (LCR) Jan Final rule issued in June 2014 and in force from 1 January LCR disclosure requirements Jan Net stable funding ratio (NSFR) Jan Draft rule published on 28 May NSFR disclosure requirements Jan Leverage ratio Jan , 1 (4) Revised guidelines on leverage ratio framework, incorporating amendments based on the BCBS leverage ratio framework (January 2014) were issued in January 2015 and are in force since 1 April (1) Rule migrating to Pillar 1 treatment will be issued as and when decided by the BCBS. Leverage ratio disclosure requirements Jan Revised disclosure requirements issued in January 2015 and in force from the quarter ended June Progress report on adoption of the Basel regulatory framework

15 G-SIB requirements Jan There are no Indian banks on the list of G-SIBs. One Indian bank included in the sample of global banks for identification of G-SIBs has been issued instructions to make disclosures starting from the financial year ended 31 March D-SIB requirements Jan Final framework for dealing with D-SIBs published in July D-SIBs are being declared on a regular basis and additional CET1 requirements for D-SIBs has been phased in from 1 April Pillar 3 disclosure requirements Dec Indonesia Large exposures Jan Draft regulations published in August Definition of Jan Regulation on Basel III was issued in 2013 and has been effectively implemented starting January Capital conservation buffer Jan Capital conservation buffer is governed under the Basel III regulation issued in 2013 and has been effectively implemented starting January Countercyclical buffer Jan Countercyclical buffer is governed under the Basel III regulation issued in A more detailed regulation on Countercyclical Buffer was issued in December 2015 and has been effectively implemented starting January Jan 2017 N/A Banks are prohibited from making equity. SA-CCR Jan A consultative paper on SA-CCR has been published in September Securitisation framework Jan A consultative paper on the securitisation framework was published in December 2012 under the Basel 2.5 consultative paper. First revision of the consultative paper on securitisation framework in line with the BCBS Document on Securitisation Framework (issued in December 2014) was issued in January Sept This proposal is still under study. Capital requirements for CCPs Jan Under consideration. Currently Indonesia is conducting a study on the possibility to establish a CCP. coverage ratio (LCR) Jan LCR regulation was issued in December 2015 and in force since January LCR disclosure requirements Jan Regulation on LCR disclosure requirement was issued in December 2015 and in force since January Net stable funding ratio (NSFR) Jan A consultative paper on NSFR that include the disclosure requirement was published in September NSFR disclosure requirements Jan A consultative paper on NSFR that include the disclosure requirement was published in September Progress report on adoption of the Basel regulatory framework 11

16 Japan Leverage ratio Jan , 4 (2) A consultative paper on Leverage Ratio and the disclosure requirements was issued in October The final regulation on the leverage ratio and its disclosure will be issued before 2018 which will also incorporate the leverage ratio framework based on the final document on the revision to the Basel III leverage ratio framework. (4) Selected banks have been required to calculate the leverage ratio since the last quarter of Leverage ratio disclosure requirements Jan , 4 (2) A consultative paper on leverage ratio and the disclosure requirements was issued in October The final regulation on the leverage ratio and its disclosure will be issued before 2018 which will also incorporate the leverage ratio framework based on the final document on the revision to the Basel III leverage ratio framework. (4) Selected banks have disclosed their leverage ratios on their website since the first quarter of G-SIB requirements Jan 2016 N/A Indonesia is not home to any G-SIBs. D-SIB requirements Jan D-SIBs surcharge has been stipulated in Indonesia s regulation issued in Regulation detailing the D-SIB framework methodology and its implementation on the surcharge was issued in December Banks that are categorised as D- SIBs imposed surcharge starting from January Pillar 3 disclosure requirements Dec , 1 (4) Banks are required to disclose their and risks exposures using a flexible template for the qualitative disclosure and fixed template for all quantitative disclosure based on Pillar 3 regulation issued in October (1) Indonesia plans to issue a consultative paper based on the final BCBS review of the Pillar 3 framework and considering to integrate the adoption process of all revised pillar 3 framework (first, second and third phase). Large exposures Jan A consultative paper is currently being drafted. Definition of Jan Final rule on definition of was implemented in March Capital conservation buffer Jan Final rule on Capital conservation buffer was implemented in March Countercyclical buffer Jan Final rule on Countercyclical buffer was implemented in March Jan SA-CCR Jan Securitisation framework Jan Sept Final rule published in March 2016 and in force from September Progress report on adoption of the Basel regulatory framework

17 Korea Capital requirements for CCPs Jan coverage ratio (LCR) Jan Final rule on LCR was implemented in March LCR disclosure requirements Jan Final rule on LCR disclosure was implemented in June Net stable funding ratio (NSFR) Jan NSFR disclosure requirements Jan Leverage ratio Jan Leverage ratio disclosure requirements Jan Final rule on leverage ratio disclosure was implemented in March G-SIB requirements Jan Final rule requiring public disclosure of 12 indicators for assessing G-SIBs was implemented in March Final rule on higher loss absorbency requirements for G-SIBs was implemented in March D-SIB requirements Jan Final rule on identifying D-SIBs and covering higher loss absorbency requirements for D-SIBs were implemented in March Pillar 3 disclosure requirements Dec Large exposures Jan Definition of Jan Final rule published in November 2013 and in force from December Capital conservation buffer Jan Final rule published in November 2013 and in force from December Countercyclical buffer Jan Final rule published in December 2015 and in force from January Jan Draft rule expected to be published in SA-CCR Jan Draft rule expected to be published in Securitisation framework Jan Draft rule expected to be published in Sept Draft rule expected to be published in Capital requirements for CCPs Jan Draft rule expected to be published in coverage ratio (LCR) Jan Final rule published in December 2014 and in force from January LCR disclosure requirements Jan Final rule published in December 2014 and in force from March Net stable funding ratio (NSFR) Jan Draft rule is expected to be published in NSFR disclosure requirements Jan Draft rule is expected to be published in Leverage ratio Jan , 1 (4) Final rule published in January 2015 and in force from March Progress report on adoption of the Basel regulatory framework 13

18 (1) Rule migrating to Pillar 1 treatment is expected to be published in 2017, in line with the BCBS timeline. Leverage ratio disclosure requirements Jan Final rule published in January 2015 and in force from March G-SIB requirements Jan Rules requiring public disclosure of 12 indicators for assessing G-SIBs published and in force from December D-SIB requirements Jan Final rule published in December 2015 and in force from January Pillar 3 disclosure requirements Dec Draft rule expected to be published in Large exposures Jan Large exposures framework is currently under development. Mexico Definition of Jan Final rule published on 28 November 2012 and in force from 1 January Capital conservation buffer Jan Final rule published on 28 November 2012 and in force from 1 January Countercyclical buffer Jan Final rule published on 7 April 2016 and in force from 8 April Jan The draft is under development. SA-CCR Jan The draft is under development. Securitisation framework Jan The draft is under development. Sept Draft regulation not yet published. Based on average notional amounts of noncentrally, covered entities subject to Mexican regulation would be required to exchange variation margins until March 2017, according to the transitional arrangements under the international standard. The same implementation schedule will require exchange of initial margin requirements by 2020 for Mexican covered entities given their current average notional amounts. This requirement will be adopted accordingly. Capital requirements for CCPs Jan The draft is under development. coverage ratio (LCR) Jan Final rule on LCR has been published on 31 December 2014 and in force from 1 January LCR disclosure requirements Jan Final rule on LCR disclosure has been issued and in force from 1 January Net stable funding ratio (NSFR) Jan The draft is under development. NSFR disclosure requirements Jan The draft is under development. Leverage ratio Jan The draft is under development. Leverage ratio disclosure requirements Jan Final rule published on 22 June 2016 and in force from 1 September G-SIB requirements Jan 2016 N/A Mexico is not home to any G-SIB. 14 Progress report on adoption of the Basel regulatory framework

19 Russia D-SIB requirements Jan Final rule published on 31 December 2015 and in force from 30 April Pillar 3 disclosure requirements Dec The draft is under development. Large exposures Jan The draft is under development. Definition of Jan Regulation on definition in force since 1 January Capital conservation buffer Jan Regulation on buffers in force since 1 January They include rules for conservation and countercyclical buffers, comprised of CET1 above the regulatory minimum requirements to be calculated on a quarterly basis. Countercyclical buffer Jan Rules on buffers in force since 1 January They include rules for conservation and countercyclical buffers, comprised of CET1 above the regulatory minimum requirements to be calculated on a quarterly basis. Jan Draft rule is under development. SA-CCR Jan Draft rule is under development. Securitisation framework Jan Draft rule is under development. Sept Draft rule is expected to be developed not earlier than in Capital requirements for CCPs Jan Draft rule is under development. coverage ratio (LCR) Jan The methodology for the LCR calculation for D-SIBs on a solo and consolidated basis in force since 1 January 2016 with the minimum LCR requirement of 70% (with the following annual increase by 10 percentage points up to 100% starting from 1 January 2019). LCR disclosure requirements Jan The LCR disclosure requirements on a solo and consolidated basis are effective since 1 January Net stable funding ratio (NSFR) Jan Draft rule is expected to be issued for comments in NSFR disclosure requirements Jan Draft rule is expected to be issued for comments in Leverage ratio Jan Leverage ratio is calculated for reporting purposes. Leverage ratio disclosure requirements Jan Leverage ratio disclosure requirements on a solo basis in force since 1 January 2015, on a consolidated basis - since 1 January G-SIB requirements Jan 2016 N/A D-SIB requirements Jan The assessment methodology for D-SIBs in force since September The CBR approved the list of 10 domestic systemically important banks. Capital buffers requirements for banks are in force since 1 January Progress report on adoption of the Basel regulatory framework 15

20 From 2016, the minimum level of HLA requirement for all 10 D-SIBs is 0.15 % of RWA, in 2017 the requirement will be 0.35 %, in %, and 1% - from 1 January Pillar 3 disclosure requirements Dec Draft rule is expected to be issued for comments in Saudi Arabia Large exposures Jan Draft rule is under development. Definition of Jan Final rule published via SAMA s Final Guidance Document Concerning Implementation of Capital Reforms Under Basel III Framework on December 2012 and has been in force from January Capital conservation buffer Jan Final rule published via SAMA s Final Guidance Document Concerning Implementation of Capital Reforms Under Basel III Framework on December 2012 and has been in force from January Countercyclical buffer Jan Final rule published via SAMA s Final Guidance Document Concerning Implementation of Capital Reforms Under Basel III Framework on December 2012 and has been in force from January Final rule published via SAMA s circular on countercyclical buffer rate for Saudi Arabia including methodology used for the calculation of such buffer. Jan Final rule published via SAMA Circular # dated 20 June 2016 and in force from January SA-CCR Jan Final rule published via SAMA Circular # dated 20 June 2016 and in force from January Securitisation framework Jan Final rule published via SAMA Circular dated August 2016 and in force from January Sept Final rule published via SAMA Circular # dated 20 June 2016 and in force following Basel transitional timeline from September Capital requirements for CCPs Jan Final rule published via SAMA Circular # dated 20 June 2016 and in force from January coverage ratio (LCR) Jan SAMA introduced the LCR from January 2012 through circular #BCS 7390 dated 8 February 2012, and the Amended LCR from June 2013 through SAMA circular # dated 10 July 2013 and has been in force from January LCR disclosure requirements Jan SAMA through its Circular # dated 25 August 2014, issued its final guidance document on the LCR disclosure. The aforementioned SAMA Circular has been in force from January Progress report on adoption of the Basel regulatory framework

21 Net stable funding ratio (NSFR) Jan Final rules published via SAMA Circular # dated 29 December 2014 and has been in force from January A new circular has been issued to implement minimum requirements of 100% from 1 January NSFR disclosure requirements Jan Final rules published via SAMA Circular # dated 28 July 2015 and in force from January A new circular has been issued to implement this template from 1 January 2016 instead. Leverage ratio Jan SAMA through its Circular # on 25 August 2014 issued its final guidance document on the Leverage Ratio disclosure requirements. The aforementioned SAMA Circular has been in force from January Leverage ratio disclosure requirements Jan Final rules published via SAMA Circular # dated 25 August 2014 and has been in force from January G-SIB requirements Jan 2016 N/A Final rules published via SAMA Circular # dated 10 July 2013 and has been in force from January Please note that there is no G-SIB in KSA, therefore, only D- SIB requirements are applicable in KSA. D-SIB requirements Jan D-SIB framework has been finalised and the relevant regulation has been issued for implementation by 1 January 2016 through SAMA Circular # (issued in September 2014) and in April The list of DSIBs have been included in the circular issued in April Pillar 3 disclosure requirements Dec Final rules published via SAMA Circular # dated 9 July 2015 and in force from December Large exposures Jan Final rules published via SAMA Circular # dated 26 February 2015 and in force from 1 July Singapore Definition of Jan Final rule published on 14 September 2012 and in force from 1 January Capital conservation buffer Jan Final rule published on 14 September 2012 and in force from 1 January Countercyclical buffer Jan Final rule published on 14 September 2012 and in force from 1 January Jan Draft rule published on 9 October 2015 and final rule is expected to be published in SA-CCR Jan Draft rule published on 9 October 2015 and final rule is expected to be published in Securitisation framework Jan Draft rule is expected to be issued for comments in Sept Final rule is expected to be issued in fourth quarter of Progress report on adoption of the Basel regulatory framework 17

22 Capital requirements for CCPs Jan Draft rule published on 9 October 2015 and final rule is expected to be published in South Africa coverage ratio (LCR) Jan Final rule published on 28 November 2014 and in force from 1 January LCR disclosure requirements Jan Final rule published on 14 December 2015 and in force from 1 January Net stable funding ratio (NSFR) Jan Consultation is expected to be issued in NSFR disclosure requirements Jan Consultation is expected to be issued in Leverage ratio Jan Draft rule is expected to be issued in Leverage ratio disclosure requirements Jan Final rule published on 14 October 2014 and in force from 1 January G-SIB requirements Jan The public disclosure and submission requirements for assessing G-SIBs are implemented with effect from 1 January 2014 in MAS Notice 637. D-SIB requirements Jan Framework for D-SIBs in Singapore published and in force from 30 April Pillar 3 disclosure requirements Dec Draft rule published on 9 October 2015 and final rule is expected to be published in Large exposures Jan Draft rule is expected to be issued for comments in Definition of Jan Final rule published on 12 December 2012 and in force from 1 January Capital conservation buffer Jan Final rule published on 12 December 2012 and in force from 1 January Countercyclical buffer Jan Final rule published on 12 December 2012 and in force from 1 January Jan Implementation date: Draft rules to be published during in fourth quarter of SA-CCR Jan Implementation date: Draft rules to be published in fourth quarter of Securitisation framework Jan South Africa adopted internationally agreed implementation date of January Sept Draft directive to be published in the fourth quarter of 2016 for final review, comments and implementation. Capital requirements for CCPs Jan Implementation date: Draft rules to be published in fourth quarter of coverage ratio (LCR) Jan LCR requirements are addressed in the regulations which were implemented with effect from 1 January Revisions to the LCR were implemented with effect from January 2015 by means of a directive, and subsequently incorporated into the amendments to the regulations, published on 10 April Progress report on adoption of the Basel regulatory framework

23 LCR disclosure requirements Jan Final rule published on 1 October 2014 and in force from January The LCR disclosure requirements were subsequently incorporated into the amendments to the regulations, published on 20 May Switzerland Net stable funding ratio (NSFR) Jan , 1 (3) NSFR requirements are addressed in the Basel III regulations which were implemented with effect from 1 January (1) Final revisions to NSFR will be published in due course. South Africa adopted internationally agreed implementation date of January NSFR disclosure requirements Jan South Africa adopted internationally agreed implementation date of January Leverage ratio Jan A 4% leverage ratio requirement is defined in the amended regulations which were published on 20 May 2016 and implemented with effect from 1 July Any final revisions to the leverage ratio requirement will be published in due course. Leverage ratio disclosure requirements Jan Final rule published on 19 September 2014 and in force from January The leverage ratio disclosure requirements were subsequently incorporated into the amendments to the Regulations, published on 20 May G-SIB requirements Jan 2016 N/A The Bank Supervision Department of the South African Reserve Bank is not the home supervisor to any G-SIB. D-SIB requirements Jan D-SIB requirements are addressed in the regulations that were implemented with effect from 1 January A subsequent directive (D5/2013) specifies the application of the amended framework, including the D-SIB requirements. South Africa adopted the internationally agreed implementation date of January Pillar 3 disclosure requirements Dec Directive (D11/2015 issued December 2015) specifies the revised Pillar 3 disclosure requirements. South Africa adopted internationally agreed implementation date of year-end Large exposures Jan South Africa adopted internationally agreed implementation date of January Definition of Jan Final rule published in June 2012 and in force since 1 January Capital conservation buffer Jan Final rule published on 18 July 2012 and in force since 1 January Countercyclical buffer Jan National countercyclical buffer regime in place since 2012 and buffer activated for residential real estate exposures in Switzerland. Final regulation for the international countercyclical buffer regime in place since June 2016, based on available implementation guidance by the Basel Committee from October Jan Draft rule published in June SA-CCR Jan Draft rule published in June Progress report on adoption of the Basel regulatory framework 19