New Delhi, Mar 28 (IANS): In view of the coronavirus pandemic, the implementation of Basel-III norms for banking services has been deferred by a year till January 1, 2023.
Among other steps, the Basel Committee's oversight body, the Group of Central BankGovernors and Heads of Supervision (GHOS), has decided on deferring the implementation of the norms which were scheduled to come into effect from January 1, 2022.
"The implementation date of the Basel III standards finalised in December 2017 has been deferred by one year to January 1, 2023. The accompanying transitional arrangements for the output floor has also been extended by one year to January 1, 2028," a BIS statement said.
The Group of Central Bank Governors and Heads of Supervision (GHOS), has endorsed a set of measures to provide additional operational capacity for banks and supervisors to respond to the immediate financial stability priorities resulting from the impact of the coronavirus disease (Covid-19) on the global banking system, it said.
Further, the implementation of the revised market risk framework and the revised Pillar-3 disclosure requirements have also been deferred by one year to January 1, 2023.
These standards were finalised with the objective of complementing the initial set of Basel III standards, said the statement.
"The revised timeline is therefore not expected to dilute the capital strength ofthe global banking system, but will provide banks and supervisors additional capacity to respond immediately and effectively to the impact of Covid-19," it said.
Francois Villeroy de Galhau, Chairman of the GHOS and Governor of the Bank of France, said: "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."
GHOS members unanimously reaffirmed their expectation of full, timely and consistent implementation of all Basel III standards based on this revised timeline.
"Current events demonstrate once again the importance of a resilient financial system, which these reforms will help further reinforce," the statement added.