15 June 2015

BCBS: Basel III implementation assessments of India and South Africa published by Basel Committee

Overall, the assessment outcomes for both India and South Africa are highly positive and reflect various amendments to the risk-based capital and LCR rules undertaken by the authorities during the assessment.

The Basel Committee on Banking Supervision published reports assessing the implementation of the Basel risk-based capital framework and the Liquidity Coverage Ratio for India and South Africa. These form part of a series of reports on Basel Committee members' implementation of Basel standards under the Committee's Regulatory Consistency Assessment Programme (RCAP).

A key component of the RCAP is to assess the consistency and completeness of a jurisdiction's adopted standards and the significance of any deviations from the regulatory framework. The RCAP does not take account of a jurisdiction's bank supervision practices nor does it evaluate the adequacy of regulatory capital and high-quality liquid assets for individual banks or a banking system as a whole.

Overall, the assessment outcomes for both India and South Africa are highly positive and reflect various amendments to the risk-based capital and LCR rules undertaken by the authorities during the assessment. The Basel Committee noted that several aspects of the domestic rules in both countries are more rigorous than required under the Basel framework.

India

Overall, the domestic implementation of the risk-based capital framework is found to be "compliant" with the Basel standards as all 14 components are assessed as "compliant". Regarding the LCR, India is assessed overall as "largely compliant", reflecting the fact that most but not all provisions of the Basel standards were satisfied. The implementation of the LCR regulation's component is assessed as "largely compliant" and the implementation of the LCR disclosure standards' component is assessed as "compliant".

South Africa

Overall, the domestic implementation of the risk-based capital framework is found to be "compliant" with the Basel standards as all 14 components are assessed as "compliant". South Africa is also assessed as "compliant" with the Basel LCR standards, including the LCR regulation and the LCR disclosure standards.

Press release

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