Delayed implementation of revised Basel III standards may have implications for the G20's objective of establishing a level playing field for banks globally, according to the Basel Committee on Banking Supervision.

The latest progress report on the regulation, set to be presented to G20 leaders next week in China, says postponements put “unnecessary pressure” on jurisdictions that have implemented the standards based on the agreed timelines.

“A concurrent implementation of global standards is all the more important, as many jurisdictions serve as hosts to internationally active banks,” the report adds.

Basel III is a global regulatory framework on bank capital adequacy, stress testing, and market liquidity risk introduced after the 2008-09 financial crisis.

Capital and liquidity standards have generally been transposed into domestic regulations within the time frame set by the Basel Committee.

That said, a considerable number of revised standards await transposition into domestic regulations over the next couple of years. 

While still committed to implementing these standards, some jurisdictions report challenges in meeting the agreed implementation deadlines.

These include margin requirements for non-centrally cleared derivatives (by September 2016), the revised Pillar 3 framework (by end-2016), the standardised approach for measuring counterparty credit risk (by January 2017)

Capital requirements for central counterparty (CCP) exposures are set to be introduced by January 2017 as well as capital requirements for equity investments in funds.

The reported challenges relate in part to domestic legislative or rule-making processes.

Some jurisdictions also report that banks face difficulties in adjusting their information systems to meet and report on the new requirements.