Today the Basel Committee on Banking Supervision published reports assessing the implementation of the Basel risk-based capital framework and the Liquidity Coverage Ratio (LCR) for Russia and Turkey. These form part of a series of reports on Basel Committee members’ implementation of Basel standards under the Committee’s Regulatory Consistency Assessment Programme (RCAP). A key component of the RCAP is to assess the consistency and completeness of a jurisdiction’s adopted standards and the significance of any deviations from the regulatory framework. The RCAP does not take account of a jurisdiction’s bank supervision practices nor does it evaluate the adequacy of regulatory capital and high-quality liquid assets for individual banks or a banking system as a whole.
Overall, the assessment outcomes for both Russia and Turkey are positive and reflect various amendments to the risk-based capital and LCR rules undertaken by the authorities during the respective assessments. The Basel Committee noted that several aspects of the domestic rules in both countries are more rigorous than required under the Basel framework.
Russia
Overall, the domestic implementation of the risk-based capital framework is found to be “compliant” with the Basel standards as all components are assessed as “compliant”. Russia is also assessed as “compliant” with the Basel LCR standards, including the LCR regulation and the LCR disclosure standards. A compliant assessment grade is the highest of the four possible grades.
Turkey
Overall, the domestic implementation of the risk-based capital framework is found to be “compliant” with the Basel standards as all components are assessed as “compliant”. Turkey is also assessed as “compliant” with the Basel LCR standards, including the LCR regulation and the LCR disclosure standards. A compliant assessment grade is the highest of the four possible grades.
In carrying out the reviews of Russia and Turkey, the assessment teams held discussions with senior officials and technical staff of the Central Bank of Russia and the Banking Regulation and Supervision Agency of Turkey. The teams also met with a select group of banks in both countries.
Post-assessment follow-up actions
In addition to the RCAP assessment reports, today the Committee published overviews of post-RCAP follow-up actions taken by Australia, Brazil, Canada, China, European Union, Japan, Singapore, Switzerland and United States. During 2012 – 2014, assessments were made of these jurisdictions’ regulatory implementation of the Basel standards. The follow-up reports, which are based on self-reporting, summarise where the jurisdictions have taken, or plan to take, further actions to address findings raised in the RCAP assessments. The Committee will publish in 2017 post-RCAP monitoring reports for jurisdictions that were assessed in 2015.
