On Feb. 15, BER BMA issued guidance notes regarding Basel III.
BER BMA published updated guidance notes for Bermuda banks regarding Basel III.
Follows May 2022 consultation on Basel III standardized risk approach, see #138831.
Amendment
Adopted the capital and liquidity regulatory requirements consistent with Basel III.
These requirements should be viewed in the broader context of the Authority’s efforts to maintain high standards of risk management and corporate governance in Bermuda.
BER BMA noted that it is of the view that observance of quantitative regulatory prudential minima is only one important element in a comprehensive framework.
Of equal importance is the adoption within an institution of a sound framework of governance and risk management under pillar 2 and public disclosure under pillar 3.
Consistent with this, BER BMA will continue to promote strengthened internal risk management through the Capital Assessment and Risk Profile (CARP) process.
Effectiveness
The revised standardized approach for credit risk comes into effect in Jan. 2024.
The twelve-month transition period will end Dec. 31, 2024.
Regulators
BER BMA
Entity Types
Bank
Reference
Gd, 2/15/2024; Basel III;
Functions
Compliance; C-Suite; Financial; Human Rights; Reporting; Risk; Treasury
