【正文】 d quantity of the regulatory capital base and enhance the risk coverage of the capital framework. They are underpinned by a leverage ratio that serves as a backstop to the riskbased capital measures, is intended to constrain excess leverage in the banking system and provide an extra layer of protection against model risk and measurement error. Finally, the Committee is introducing a number of macroprudential elements into the capital framework to help contain systemic risks arising from procyclicality and from the interconnectedness of financial institutions. 1. 8. Raising the quality, consistency and transparency of the capital base It is critical that banks? risk exposures are backed by a high quality capital base. The crisis demonstrated that credit losses and writedowns e out of retained earnings, which is part of banks? tangible mon equity base. It also revealed the inconsistency in the definition of capital across jurisdictions and the lack of disclosure that would have enabled the market to fully assess and pare the quality of capital between institutions. 9. To this end, the predominant form of Tier 1 capital must be mon shares and retained earnings. This standard is reinforced through a set of principles that also can be tailored to the context of nonjoint stock panies to ensure they hold parable levels of high quality Tier 1 capital. Deductions from capital and prudential filters have been harmonised internationally and generally applied at the level of mon equity or its equivalent in the case of nonjoint stock panies. The remainder of the Tier 1 capital base must be prised of instruments that are subordinated, have fully discretionary non cumulative dividends or coupons and have neither a maturity date nor an incentive to redeem. Innovative hybrid capital instruments with an incentive to redeem through features such as stepup clauses, currently limited to 15% of the Tier 1 capital base, will be phased out. In addition, Tier 2 capital instruments will be harmonised and socalled Tier 3 capital instruments, which were only available to cover market risks, eliminated. Finally, to improve market discipline, the transparency of the capital base will be improved, with all elements of capital required to be disclosed along with a detailed reconciliation to the reported accounts. 2 Basel III: A global regulatory framework for more resilient banks and banking systems 10. The Committee is introducing these changes in a manner that minimises the disruption to capital instruments that are currently outstanding. It also continues to review the role that contingent capital should play in the regulatory capital framework. 2. 11. Enhancing risk coverage One of the key lessons of the crisis has been the need to strengthen the risk coverage of the capital framework. Failure to capture major on and offbalance sheet risks, as well as derivative related exposures, was a key destabilising factor during the crisis. 12. In response to these shortings, the Committee in July 2020 pleted a number of critical reforms to the Basel II framework. These reforms will raise capital requirements for the trading book and plex securitisation exposures, a major source of losses for many internationally active banks. The enhanced treatment introduces a stressed valueatrisk (VaR) capital requirement based on a continuous 12month period of significant financial stress. In addition, the Committee has introduced higher capital requirements for socalled resecuritisations in both the banking and the trading book. The reforms also raise the standards of the Pillar 2 supervisory review process and strengthen Pillar 3 disclosures. The Pillar 1 and Pillar 3 enhancements must be implemented by the end of 2020。 Basel Committee on Banking Supervision Basel III: A global regulatory framework for more resilient banks and banking systems December 2020 Copies of publications are available from: Bank for International Settlements Communications CH4002 Basel, Switzerland Email: Fax: +41 61 280 9100 and +41 61 280 8100 169。 Bank for International Settlements 2020. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISBN print: 9291318590 ISBN web: 9291978590 Contents Contents ...................................................................................................................................3 Introduction...............................................................................................................................1 A. Strengthening the global capital framework ....................................................................2 1. Raising the quality, consistency and transparency of the capital base ..................2 2. Enhancing risk coverage........................................................................................3 3. Supplementing the riskbased capital requirement with a leverage ratio...............4 4. Reducing procyclicality and promoting countercyclical buffers ..............................5 Cyclicality of the minimum requirement .................................................................5 Forward looking provisioning .................................................................................6 Capital conservation...............................................................................................6 Excess credit growth ....................................