Banks set to implement Basel capital

KUALA LUMPUR: The majority of Asia-Pacific banking jurisdictions are set to take the latest global iteration of Basel capital standards in their stride, according to Fitch Ratings.

It said banking groups in most markets in Asia-Pacific have been able to absorb the moderate increases in capital requirements required under the final Basel III standards due to prevailing conservative regulatory approaches and less extensive use of internal models within the region.

“Few have implemented the rules in full so far but we expect the transition will not have a substantial impact on capital requirements over the next two years – by which time adoption should be completed in most major Asia-Pacific jurisdictions,” it said.

It noted that China launched its domestic implementation of final Basel III at the start of 2024, and it would be followed by Japanese internationally active banks from end-March.

“Singapore banks will go live under the new regime from July, and then Hong Kong and Malaysian banks from January 2025.” — Bernama