Regulators bristle at slow progress on BCBS 239

Risk.net
By Steve Marlin
18 July 2018

Article reports that regulators are growing impatient with the industry’s slow pace in adopting the risk-data aggregation and reporting principles under BCBS 239, with only three of 30 banks passing the Basel Committee’s most recent compliance tests. Non-compliant banks now face capital add-ons and restrictions on their business and capital distributions, although they maintain that the three years they were given to implement this regulation was insufficient for banks with global operations.

There is no absolute criteria for determining compliance to BCBS 239, but the Basel Committee ranks firms on a scale of one to four depending on the level to which they adhere to this regulation, with four being fully compliant and one indicating that the firm is in no way compliant.

The article quotes Rob Lee, executive director at AxiomSL, who says that many banks do see the value in the new BCBS 239 regulation, and are creating policies and procedures to comply with these new principles.

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