As part of its Regulatory Consistency Assessment Programme, the Basel Committee has published the results of its analysis of the variation across major international banks in the application of risk weights for credit risk in the banking book. The analysis has found that a quarter of the variation registered is due to diversity in bank and supervisory practices, rather than just responding to underlying differences in banks' risk appetite. This variation can cause up to a 20% divergence from the benchmark level of capital. To tackle these variations, the Basel Committee will consider providing additional guidance on the Basel framework and enhancing Pillar 3 disclosure, through more granular information and standardised definitions and templates. Over the medium term, the Basel Committee might consider reviewing national discretions in the implementation of the Basel framework or constraining the flexibility of internal ratings-based calculation of capital requirements. In a related development, the Basel Committee has also published a discussion paper on whether the Basel capital framework strikes the right balance between risk sensitivity, simplicity and comparability. It asks for comments on this discussion paper by 11 October. (Source: Basel Committee Reports on Consistency in RWAs in the Banking Book and Basel Committee Consults on Balancing Risk Sensitivity, Simplicity and Comparability)