The Group of Governors of Central Banks and Supervisory Authorities (GHOS), the supervising authority at the Basel Committee, has decided to postpone for one year the mandatory implementation of Basel III standards – until January 2023. The standards insist of capital requirements of banks the world over. The deferment has been made in view of the impact of Covid-19 on the world financial system and economic stability. Basel Committee said in a statement the new roadmap is not intended to ‘dilute’ the capital strength of the global banking system, but rather “to provide banks and supervisors with additional capabilities to respond immediately and effectively to the impact of Covid -19″. Specifically, the GHOS has decided to postpone the entry into force of the Basel standards, agreed in December 2017. Likewise, the implementation of the revised market risk framework and the renewed requirements of Pillar 3 have also been delayed until 2023. Francois Villeroy de Galhau, chairman of the Basel group of central bank governors, said in a statement it is important that banks and supervisors are able to commit their full resources to respond to the impact of Covid-19. This includes providing critical services to the real economy and ensuring that the banking system remains financially and operationally resilient. The entire gamut of the regulations will not be in force between January 2023 and January 2028.
