Banking regulators announce year-long delay for Basel III capital rules due to coronavirus
Global banking regulators issued a press release Friday saying that parts of the Basel III banking rules reform which have but to be carried out will likely be pushed again a 12 months due to the coronavirus pandemic.
According to the brand new timeline, the rules – associated to how a lot capital banks are required to maintain in sure circumstances and the way they mannequin such wants – are being pushed again to from January 2022 till January 2023. The transfer was introduced by the Group of Central Bank Governors and Heads of Supervision, Basel III’s oversight physique.
The Basel III reforms hint their origin to the monetary disaster of the late 2000s and had been initially agreed upon in 2010. The delays introduced Friday have to do with the set of rules which have but to be carried out.
“It is important that banks and supervisors are able to commit their full resources to respond to the impact of Covid-19. This includes providing critical services to the real economy and ensuring that the banking system remains financially and operationally resilient. The measures endorsed by GHOS today aim to prioritise these objectives and we remain ready to act further if necessary,” François Villeroy de Galhau, governor of the Bank of France and the chairman of the Group of Central Bank Governors and Heads of Supervision, mentioned in a press release.