The Basel Committee on Banking Supervision has published a report detailing its reform work to date, and setting out some of its plans for the year ahead.

The committee met Tuesday in Seoul, and, among other things, agreed on details of the liquidity coverage ratio it will introduce. It also said that by year end it will issue detailed rules setting out all elements of the standards for both the capital and liquidity requirements.

At the end of the meeting, the Basel Committee also published a report on its regulatory reforms to address the financial crisis, highlighted by the new capital rules announced in September. Looking ahead, the committee said it will concentrate its efforts on the implementation of the Basel III framework and related supervisory standards.

It is also conducting work in a variety of other areas, the report says, including:
> a fundamental review of the trading book;
> the use and impact of external ratings in the securitisation capital framework;
> developing a policy response to systemically important banks;
> the treatment of large exposures;
> enhanced cross-border bank resolution; and
> a review of supervisory principles.

The work on the fundamental review of the trading book will be completed by the end of 2011, the report says; as will the work on ratings and securitizations.

By mid-2011, the committee intends to complete a study of the additional loss capacity that systemically important banks should have, and its review of proposed contingent capital instruments.

The committee expects to begin a revision of the core supervisory principles at the beginning of 2011, and to undertake a review of standards implementation next year, too.

IE