April 16, 2020
Financial Services Agency
（Japanese version: published March 30, 2020)
Implementation timeline for capital adequacy requirements, etc. in Japan
1. National implementation of the finalized Basel III standards
On Friday, March 27, 2020, the Group of Central Bank Governors and Heads of Supervision (GHOS)—the oversight body of the Basel Committee on Banking Supervision (Basel Committee)—announced a deferral of the national implementation date of the Basel III standards finalized in December 2017 and the revised market risk framework finalized in January 2019 by one year (deferred from January 2022 to January 2023) in light of the recent expansion of the impact of coronavirus disease 2019 (COVID-19).
The GHOS has confirmed that there is no change to the contents of requirements under the finalized Basel III standards except for the implementation date.
Due to the above change to the implementation date of the international agreement, the Financial Services Agency of Japan (JFSA) plans to implement the finalized Basel III standards in Japan from March 2023.
In line with this, whereas the JFSA planned to publish the draft regulations for the national implementation by the end of June 2020 as stated in the "JFSA’s Initiatives for User Oriented Financial Services in a New Era - Financial Services Policy: Assessments and Strategic Priorities 2019," the publication date will be reviewed through dialogue with stakeholders, given sufficient consideration to their administrative burden, etc.
Please see below for the press release published by the GHOS.
2. National implementation of the Net Stable Funding Ratio
In June 2018, the JFSA published draft regulations for the Net Stable Funding Ratio (NSFR) under Basel III, agreed at the Basel Committee in October 2014, with a plan to introduce the NSFR for internationally active banks. However, the JFSA has decided to review the implementation date of the regulations in consideration of the implementation status in other countries (*).
(*) https://www.fsa.go.jp/news/30/ginkou/20180629.html (available in Japanese)
The JFSA hereby confirms that the NSFR will not be implemented in Japan for the next one year from April 2020, in light of the implementation status in other countries.
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