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Dealing with global systemically important banks
The Basel Committee reviewed an updated list of global systemically important banks (G-SIBs) based on end-2013 data. A bank designated as a G-SIB based on the Committee's methodology for assessing global systemic importance is required to hold additional Common Equity Tier 1 (CET1) capital of between 1% and 2.5%.
Endorsement of the net stable funding ratio
The Committee endorsed the final details of Basel III's net stable funding ratio (NSFR). The NSFR limits the extent to which illiquid assets can be funded by volatile short-term borrowings and encourages banks to maintain more stable and longer-term sources of funding. The final standard will be released in the coming weeks and will take effect at the start of 2018.
Revising corporate governance guidance
Effective corporate governance is critical to the proper functioning of the banking sector. The Basel Committee has revised its 2010 Principles for enhancing corporate governance and will soon publish revisions for consultation.
Finalising securitisation standards
The Committee also reviewed progress towards finalising revisions to the Basel framework's securitisation standard and agreed the remaining significant policy details that will be published by year-end. It also recognised work that is being conducted jointly by the Basel Committee and the International Organization of Securities Commissions (IOSCO) to review securitisation markets.
Improving consistency in bank capital ratios
The Committee has been closely examining banks' risk weighting practices. At its meeting, the Committee discussed a range of policy and supervisory actions that it has initiated to address the issue of excessive variability of risk-weighted assets.