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Basel III: Implementation in Jersey

Overview of the Commission's approach

The Basel Committee on Banking Supervision ("Basel Committee") has issued various new international standards that collectively form "Basel III".

A key element is the revision of the prior international standards set out in the document "International Convergence of Capital Measurement and Capital Standards" ("Basel II"), issued in 2006 by the Basel Committee, which has been implemented previously in Jersey.

Regulators throughout the world are set to implement Basel III, although plans and timescales vary. In the EU, many elements have been implemented via a new Capital Requirements Regulation ("CRR") and a revised Capital Requirements Directive ("CRD IV").

The Commission will adopt a flexible rollout approach, recognising that many elements are relevant but that parts of the new standards were intended for consolidated regulation of international banking groups.

As part of this work, the Commission collaborated with the Guernsey Financial Services Commission and the Isle of Man Financial Services Authority (collectively the "Tri-Party Group") to produce a set of discussion papers ("DPs") that were distributed to banks in the Crown Dependencies, initially on the proposed general approach to Basel III and latterly on certain key aspects.

Jersey specific implementation proposals have been, and will be, the subject of local consultation, with the first such paper being CP No. 8 2015 "Basel III: Capital Adequacy and Leverage".

A summary of all related papers issued to date, with links to these, is shown below.

General Papers

Tri-Party Discussion Papers:

DP "Basel III", distributed September 2012
Feedback on the Basel III DP, distributed July 2013

Capital Adequacy

Tri-Party Discussion Papers:

DP "Basel III: Capital Adequacy", distributed December 2013
Feedback on the Basel III Capital Adequacy DP, distributed December 2014
DP "Basel III Leverage Ratio", distributed June 2014
Feedback on the Leverage Ratio DP, distributed December 2014

Commission Discussion Papers:

DP "Basel III: Capital Adequacy Elements of Basel III", issued March 2016

Commission Consultation Papers:

CP No. 8 2015 "Basel III: Capital Adequacy and Leverage", issued July 2015
Feedback on CP No. 8 2015, issued March 2016

Systemically Important banks

Tri-Party Discussion Papers:

DP "Domestic Systemically Important Banks ("D-SIBS") (Including Recovery and Resolution)", distributed January 2014
Feedback on the D-SIB DP, distributed July 2014

Commission Discussion Papers:

DP "Addressing the Risks posed by Domestic Systemically Important Banks", issued March 2016


Tri-Party Discussion Papers:

DP "Basel III: Liquidity", distributed July 2015
Feedback on the Liquidity DP, distributed February 2016


Commission Consultation Papers:

Feedback on Consultation Paper No. 3 2017
CP No. 3 2017 Basel III: Liquidity Management

Appendices B and C: LCR requirements and reporting

Appendix B: HQLA Guide
Appendix C: LCR/LMR Guide

Appendices D to F: Supporting data for the LCR

Appendix D: Funding concentration Guide
Appendix E: HQLA Concentration and Encumbrance Guide
Appendix F: LCR Performance Guide

Appendices G and H: Liquidity backdrop

Appendix G: NSFR Guide
Appendix H: Cashflow Reporting Guide

Appendix I: OIB Reporting Guide

Appendix I: OIB Reporting Guide

Appendix J: Changes to the Banking Codes

Appendix J: Changes to the Banking Codes


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