FSB Second Thematic Peer Review on Resolution Regimes. The Financial Stability Board published its Second Thematic Peer Review on Resolution Regimes, which analyzes the range and nature of powers available to banking authorities to support the implementation of the Key Attributes of Effective Resolution Regimes for Financial Institutions. The report found that only a limited number of FSB jurisdictions have implemented a resolution regime in line with the Key Attributes, with the primary gaps in resolution powers involving explicit continuity powers, bail-in powers, and powers to impose a temporary stay on the exercise of early termination rights. (3/18/2016) FSB press release.
Basel Committee issues RCAP handbook and self-assessments. The Basel Committee on Banking Supervision published a handbook for jurisdictions that contains guidance, principles and processes for assessing compliance with Basel standards under the Regulatory Consistency Assessment Program, which evaluates the consistency and completeness of a jurisdiction’s capital and liquidity rules against Basel standards. The Basel Committee also published RCAP Questionnaires that jurisdictions may use to evaluate their rules’ alignment with the risk-based capital standards, the Liquidity Coverage Ratio and the Revised Pillar 3 disclosure requirements. (3/17/2016) BIS press release.
Basel Committee releases results of Basel III implementation assessments of Russia and Turkey. The Basel Committee published its assessments of the implementation of the Basel risk-based capital framework and the LCR by Russia and Turkey. The assessments found that both Russia and Turkey are compliant with the domestic implementation of the risk-based capital framework and the Basel LCR standards. The Basel Committee also published reports that provide overviews of the post-assessment actions taken by several jurisdictions following RCAP assessments conducted from 2012 to 2014. (3/15/2016) BIS press release.
Basel Committee consultation on enhanced Pillar 3 disclosure requirements.The Basel Committee published a consultative document that proposes additional disclosure requirements under the Pillar 3 framework relating to the total loss-absorbing capacity regime for global systemically important banks, the proposed operational framework, and the final standard for market risk, as well as other enhancements to the Pillar 3 framework. Comments are due on or before June 10, 2016. (3/11/2016) BIS press release.