Stefan Ingves has spoken on the Basel Committee’s priorities for the next year. He focused on:

  • finalising the post-crisis regulatory reforms: he looked particularly at the framework now in place for liquidity, leverage and large exposures;
  • work on revising the risk-based capital framework, getting the right balance between simplicity, comparability and risk sensitivity; and to reduce the excessive variability in risk-weighted assets (RWAs) under internal models. This will be the main focus, and there will be a consultation at the end of 2015 on enhancing the comparability of RWAs that are calculated using internal ratings-based (IRB) approaches for credit risk. The Committee will also finalise the market risk standard before the end of the year. Other, completed, parts of this initiative are enhanced disclosure and the design of the capital floor (which is now being calibrated). He also spoke on data monitoring and thematic work; and
  • monitoring the impact of the agreed reforms to ensure both that they are implemented consistently and that they strengthen supervision.

(Source: Basel Committee Updates on Priorities)