Regulatory Consistency Assessment Programme (RCAP) - Handbook for jurisdictional assessments
This revised version of the Handbook includes specific guidance for the assessments of the Basel III revisions to risk weighted assets and the leverage ratio framework.
The Basel Committee updated its RCAP Handbook for jurisdictional assessments to reflect how assessors should evaluate domestic prudential rules for consistency and completeness against the Basel framework. The revised handbook matters because it adds specific guidance for assessing the Basel III revisions to risk-weighted assets and the leverage ratio framework, which are core bank capital and leverage standards.
Key dates
- 2025-12-03
- BIS published the revised RCAP Handbook for jurisdictional assessments.
Suggested considerations
- Compliance teams may wish to review whether their jurisdiction’s Basel III implementation, especially risk-weighted assets and leverage ratio rules, aligns with the standards that RCAP assessors will evaluate.
- Supervisory liaison functions may wish to check the updated handbook when preparing for jurisdictional reviews or responding to RCAP questionnaires and evidence requests.
- Prudential policy teams may wish to map any domestic deviations from Basel standards and document the rationale, materiality, and implementation status for possible RCAP scrutiny.
What changed
The publication updates the Handbook that RCAP assessors, assessed jurisdictions, and other experts use to conduct jurisdictional reviews of domestic prudential regulations against Basel minimum requirements. The handbook is a flexible compendium, meaning its guidance and principles are revised or elaborated as RCAP evolves and as lessons from past assessments are incorporated. This revised version specifically adds guidance for assessments of the Basel III revisions to risk-weighted assets and the leverage ratio framework.
Compliance impact
The publication is procedurally significant because RCAP findings can identify material gaps between domestic prudential rules and Basel minimum standards. It does not itself impose sanctions or deadlines, but it can increase supervisory scrutiny and highlight inconsistencies that jurisdictions may need to address.
References
- [1] bis.org/bcbs/publ/d601.htm
- [2] bis.org/bcbs/implementation/rcap_role.htm
- [3] bis.org/bcbs/publ/d361.pdf
- [4] bis.org/bcbs/implementation/rcap_jurisdictional.htm
- [5] grahambishop.com/ViewArticle.aspx?id=31209&CAT_ID=20 third-party
- [6] pwcplus.de/en/article/233747/regulatory-consistency-asses... third-party
- [7] regulationtomorrow.com/2016/03/basel-committees-rcap-juri... third-party
- [8] piie.com/sites/default/files/2024-11/ingves2024-11-25ppt.pdf third-party
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