The Basel III package of reforms is the centrepiece of the international community’s work to build more resilient financial institutions. The Basel Committee on Banking Supervision (BCBS) has largely completed the design of the reforms and it continues to enhance its implementation monitoring. Full, timely and consistent implementation of Basel III is fundamental to a sound and properly functioning banking system that is able to support economic recovery and growth on a sustainable basis. Consistent implementation of Basel standards will also foster a level playing field for internationally active banks.

Read more on the BCBS international regulatory framework for banks (Basel III)

Risk management is a critical first line of defence in the resilience of financial institutions. The FSB, standard-setting bodies (SSBs) and national authorities are working to strengthen risk management practices, including through increased regulatory and supervisory focus as well as additional guidance on firms’ risk culture and governance practices. Implementation of these reforms is ongoing and will require additional efforts by national authorities and financial institutions.