Russia and Turkey have been awarded the highest possible grade for their adherence to the Basel risk-based capital framework and the liquidity coverage ratio (LCR).
The Basel Committee on Banking Supervision has published a series of reports assessing the quality of regulatory implementation within the two countries as part of its regulatory consistency assessment programme.
The committee rated both countries as ‘compliant’, the highest of four possible ratings, for their domestic implementation of the risk-based capital framework, which was considered to be in line with the LCR standards.
Several aspects of the domestic rules in both countries are actually more rigorous than required under the Basel framework, according to the committee.
The regulatory consistency assessment programme analyses a jurisdiction's adopted standards and the significance of any deviations from the regulatory framework.
But the programme does not take account of a jurisdiction's bank supervision practices or evaluate the effectiveness of the regulatory capital and high-quality liquid assets for individual banks or the banking system as a whole.
