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Basel III is a set of international standards that are issued by the international standard setting body, Basel Committee on Banking Supervision (Basel Committee). These standards aim to make banks safer and address a number of issues that were identified during the financial crisis.
We are looking to implement the Basel III framework, in a way that is efficient and effective. The framework will work against a backdrop of international implementation and we would like to consult industry on this matter.
All major financial centres have committed to the implementation of Basel III and as a registered person under the Banking Law, it is anticipated that you will be subject to Basel III over the next few years.
What we are proposing
We are consulting on the further implementation of Basel III in Jersey following the implementation of capital quality and liquidity elements. This consultation addresses the framework by setting out a general solution for complex, lower impact aspects.
Appendices B to G for this consultation:
- Draft Interim Policy Statement on use of Advanced Approaches
- CRE20: Standardised Approach: individual exposures
- OPE25: Calculation of RWA for operational risk
- LEX: Large Exposures
- SCO50: Domestic systemically important banks
- RBC40: Systemically important bank buffers
An interim policy on use of the advanced approaches is proposed that would come into force imminently following the conclusion of the consultation.
For four other higher impact areas, we have set out initial proposals on the main aspects that it is intended and this would provide the basis for implementation, but only after further consultation on details of:
- Standardised approach to credit risk
- Standardised approach to operational risk
- Large exposures
- Systemic banks
Following this consultation, we will implement the interim policy on use of the advanced approaches and publish feedback.
In 2020 / 2021, we plan on carrying out further consultations but aim to implement the relevant requirements fully by the end of 2022.
Earlier Basel III papers
Tri-party discussion papers, issued jointly with Crown Dependency counterparts
- Discussion paper on Basel III, distributed September 2012,distributed September 2012
- Feedback on Basel III discussion paper, distributed July 2013
- Discussion paper Basel III: Capital Adequacy, distributed December 2013
- Feedback on Basel III Capital Adequacy discussion paper, distributed December 2014
- Discussion paper on Basel III Leverage Ratio, distributed June 2014
- Feedback on the Leverage Ratio DP, distributed December 2014
- Discussion paper on Domestic Systemically Important Banks (D-SIBS) (Including Recovery and Resolution), distributed January 2014
- Feedback on the D-SIB DP, distributed July 2014
- Discussion paper on Basel III: Liquidity, distributed July 2015
- Feedback on the Liquidity DP, distributed February 2016
- Discussion paper on Basel III: Capital Adequacy Elements of Basel III, issued March 2016
- Discussion paper: Addressing the risks posed by Domestic Systemically Important Banks, issued March 2016
Earlier JFSC consultations
- Consultation No. 8 2015 Basel III: Capital Adequacy and Leverage, issued July 2015
- Feedback on consultation No. 8 2015, issued March 2016
- Consultation no. 3 2017 Basel III: Liquidity Management
- Feedback on Consultation Paper No. 3 2017