Full, timely and consistent implementation of Basel III remains fundamental to building a resilient financial system, maintaining public confidence in regulatory ratios, and providing a level playing field for internationally active banks. This report updates G20 Finance Ministers and Central Bank Governors on the progress in the adoption of the Basel III regulatory reforms since the Basel Committee on Banking Supervision1 issued its October 2012 report. The scope of this update is broader than previous progress reports to the G20. In addition to reporting on the steps taken by Basel Committee member jurisdictions towards implementing the Basel III capital standards, which was the focus of the last report, this update also covers developments in other Basel III regulatory standards, and banks’ progress in bolstering their capital bases. The report also highlights specific implementation-related shortcomings that are surfacing, which require continued policy and operational attention.

Basel Committee members agreed to begin implementation of Basel III’s capital standards from 1 January 2013, requiring that they translate the Basel III standards into national laws and regulations before this date. Since the Basel Committee’s October 2012 report, eight more member jurisdictions have issued final Basel III-based capital regulations, bringing the total to 14. Eleven Basel Committee member jurisdictions now have final Basel III capital rules in force: Australia, Canada, China, Hong Kong SAR, India, Japan, Mexico, Saudi Arabia, Singapore, South Africa and Switzerland. Three Basel Committee member jurisdictions – Argentina, Brazil and Russia – have issued final rules and will bring them into force by end 2013. The other 13 member countries that missed the 1 January 2013 deadline for issuing final regulations have published their draft regulations: nine countries that are also members of the European Union,3 Indonesia, Korea, Turkey and the United States. The Basel Committee is urging those jurisdictions to issue final versions of their regulations as soon as possible and to align their implementation with the internationally agreed transition period deadlines. It is particularly important for member jurisdictions that are home to global systemically important banks (G-SIBs) to complete the issuance of final Basel III regulations.