The Financial Stability Board (FSB) welcomes the announcement by the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, that agreement has been reached on the finalisation of Basel III. The agreement improves the comparability of banks’ risk-weighted assets and reinforces the credibility of the bank capital framework. Agreement on these final elements means that one of the key reforms pursued to address the causes of the global financial crisis has been completed and can be fully implemented.
Mark Carney, Chair of the FSB, said: “Agreement on the final elements of Basel III means that G20 reforms have addressed the fault lines that caused the global financial crisis. By reducing excessive variability in banks’ risk-weighted assets, the agreement locks in the benefits of a resilient international banking system, supported by a level playing field of common international standards. We encourage full, consistent and timely implementation.”
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