The Basel Committee recently released its assessment reports that are focused on the implementation of its global standards in the United Kingdom. According to an update shared by BIS, assessments find the UK regulations largely compliant with the Basel Committee’s Net Stable Funding Ratio standard and large exposures framework.
As noted in the latest announcement from the BIS, the Basel Committee has commenced the jurisdictional assessment of Basel III revisions “to risk weighted assets and the leverage ratio.”
The UK‘s implementation of the Net Stable Funding Ratio (NSFR) standard and large exposures framework (LEX) was “assessed as largely compliant with the global standards set by the Basel Committee, which is one notch below the highest overall grade (NSFR, LEX).”
The Basel Committee’s assessment reports now form part of its Regulatory Consistency Assessment Program (RCAP), “a series of reports on the implementation of Basel standards by member jurisdictions of the Basel Committee.”
With the latest release of these assessment reports, the Basel Committee concluded the jurisdictional assessment of the net stable funding ratio and the large “exposures framework in all member jurisdictions.”
In line with its work program, the Committee has now reportedly “initiated jurisdictional assessments of Basel III revisions to risk weighted assets and the leverage ratio in Q4 of 2025.”
The Basel Committee on Banking Supervision also recently shared further information related to its 2025 assessment of global systemically important banks (G-SIBs), with “additional details to improve understanding of the scoring methodology.”
The publication accompanies the Financial Stability Board’s release of the updated list of G-SIBs and includes:
- The denominators of the high-level indicators used to calculate banks’ scores.
- The high-level indicators for each bank in the sample used to calculate these denominators.
- The cut-off score used to identify the G-SIBs in the updated list and the thresholds used to allocate G-SIBs to buckets for calculating the higher loss-absorbency requirements.
The Committee’s methodology reportedly assesses the systemic importance of global banks using indicators calculated from data for the “previous fiscal year-end (2024) supplied by banks and validated by national authorities.”
The final scores are mapped to corresponding buckets “that determine the higher loss-absorbency requirement for each G-SIB.”
