Hong Kong, Mexico pass Basel III review

MANILA, Philippines - The Basel Committee on Banking Supervision said that the over-all assessment outcomes for both Hong Kong SAR and Mexico are positive and reflect various amendments to the risk-based capital and LCR rules undertaken by the authorities during the assessment.

The Basel Committee noted that several aspects of the domestic rules in both countries are more rigorous than required under its framework.

The committee also published overviews of post-assessment follow-up actions by Brazil, China, Japan, Singapore and Switzerland.

The assessments form part of a series of reports on Basel Committee members’ implementation of Basel standards under the Committee’s Regulatory Consistency Assessment Programme (RCAP).

Overall, the Hong Kong SAR implementation of the risk-based capital standards is found to be “compliant” with the standards prescribed under the Basel framework.

Twelve out of 13 components are assessed as “compliant”, while one component, Pillar 3, is determined to be “largely compliant” with the Basel standards.

The Mexico assessment was found to be “compliant” with the Basel standards. Twelve out of 14 components are assessed as “compliant”, while the countercyclical buffer and Pillar 3 are considered “largely compliant.”

In addition to the RCAP assessment reports, the Committee also published overviews of post-assessment follow-up actions by Brazil, China, Japan, Singapore and Switzerland.

These five jurisdictions were assessed in 2012 and 2013 for their regulatory implementation of the risk-based capital standards.

The follow-up reports summarize where the jurisdictions have taken, or plan to take, further actions to address findings raised in the RCAP assessments.

The follow-up reports are based on self-reporting and have not been evaluated by the Basel Committee.

The next post-RCAP monitoring report will be published in 2016 and will cover jurisdictions that were assessed in 2014.

The Basel Committee has previously published jurisdictional assessments of Australia, Brazil, Canada, China, the European Union, Japan, Singapore, Switzerland and the United States.