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Few of biggest banks ready for January 1 Basel III rules, says FSB chief Carney

Nov 05 2012 Peter Elstob, Compliance Complete

Only six global systemically important banks (G-SIBs) are likely to be subject to Basel III rules by January 1 2013, when the new regime begins its transitional phase, according to the Financial Stability Board (FSB). In a letter to G20 finance ministers and central bank governors released on Monday, the FSB's chairman Mark Carney, governor of the Bank of Canada, said that while the grouping's 27 jurisdictions were making progress implementing Basel III, only eight (Switzerland, Japan, China, Hong Kong, Singapore, Australia, India and Saudi Arabia) have so far published their final rules. This, said Carney, meant that on January 1 there was a "high probability" that only six G-SIBs (Credit Suisse, UBS, Mitsubishi UFJ, Mitzuho, Sumitomo, Bank of China) would be subject to Basel III rules, including planned capital top-ups for G-SIBs, known as higher loss absorbency (HLA) requirements. "It is crucial that all [G20] jurisdictions redouble their efforts to pass legislation that is consistent

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