Complexity is Slowing Implementation of Basel Standards, Says Committee Deputy
Risk.net reports that the adoption of rules by members of the Basel Committee on Banking Supervision (BCBS) has been slowed by the complexity of the rules, according to the Committee's Deputy Secretary General Toshio Tsuiki. He also warned that future regulation may need to be simpler- a stance that is likely to worry advocates of risk-sensitive rules.

"Unfortunately, there have been examples of some Basel standards not being implemented domestically and we are looking into those issues," said Tsuiki during a panel discussion at the Asia Risk Congress in Singapore. "One of the reasons behind this delay is still complexity of the standards," he added.

The BCBS is set to discuss the delay when it meets next week. It has been concerned with a lack of progress on certain rules that is interfering with a pledge made to the leaders of the G20 nations to ensure timely, consistent adoption of Basel standards.

To illustrate, Tsuiki pointed to Basel's standardized approach to counterparty credit risk, which was finalized in 2014 with an implementation deadline of January 2017. A report on the roll-out of Basel standards in April this year found only five of 27 member states had implemented the new rule. Of the remainder, eight nations have not yet published draft proposals, including Japan and the U.S.
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