Freshfields: “The Basel Committee on Banking Supervision (BCBS) has assessed the implementation of the Basel capital framework in the nine EU Member States that are members of BCBS and the US.  The assessments were conducted under the BCBS’ regulatory consistency assessment programme (RCAP), which assesses the consistency and completeness of a jurisdiction’s adopted standards and the significance of any deviations in the regulatory framework.  The assessment concluded that the EU Basel members were “materially non-compliant” in one of the 14 components, the internal ratings-based (IRB) approach for credit risk. The US assessment concluded that two components – the securitisation framework and the standardised approach for market risk – were “materially non-compliant”.”

• Copies of the BCBS’ US report, US press release; EU report and EU press release; and the EU Commission statement are available.