【正文】 di Arabia – have published final regulations necessary for implementing the Basel III package from 1 January 2013. Full application starts in Japan at the end of March 2013 to match Japanese banks’ fiscal year end. The European Union has published several rounds of draft directives and regulations (CRD4/CRR)13 and is expecting to have final rules by the end of June. The EU level regulations implement most elements of the Basel III package directly. This means there is no need for national regulations to transpose the regulations into their domestic legislation. The following seven member jurisdictions have not issued draft regulations: Argentina, Hong Kong SAR, Indonesia, Korea, Russia, Turkey and the United The majority of these countries believe they can finalise regulations in time for the agreed start date of 1 January 6 Report to G20 Leaders on Basel III implementation15 The Level 2 assessment of the EU is prised of a team of experts led by Mr Charles Littrell (Australian Prudential Regulation Authority). The review team prises: Mr Sergio Andenmatten (Swiss Financial Market Supervisory Authority), Ms Margaret Griffin (Reserve Bank of New Zealand), Ms Anna Lee Hewko (Federal Reserve Board), Ms Sandy Ho (Monetary Authority of Singapore), Mr Satoshi Ikeda (Financial Services Agency of Japan), and Mr Rajinder Kumar (Reserve Bank of India). The team is supported by Mr JuanCarlos Crisanto of the Basel Committee Secretariat. 16 Council of the European Union, Proposals for a Directive and Regulation of the European Parliament and of the Council Presidency Compromises, 2 April 2012. 2013. However, for others, depending on the domestic rulemaking process, meeting the deadline could be a significant challenge. Level 2 The first three Basel III regulatory consistency assessments are currently under way for the European Union, Japan and the United States, which are being conducted in parallel. In the initial phase of the Level 2 assessment process, the jurisdictions have been asked to plete a detailed selfassessment questionnaire and to provide all ponents of the regulations that implement Basel III at the domestic level. After receiving the pleted questionnaires, peer review teams of supervisors have reviewed the pleted self assessment and drafted an initial list of preliminary findings. The European Union, Japan and the United States are at different stages of Basel III implementation. Given these differences, the depth of the preliminary Level 2 findings differs. The reviews are still work in progress and this interim report is based solely on preliminary findings that are subject to further review as the analysis progresses. Currently, the peer review teams are in the process of further analysing the preliminary findings based on additional clarifications that were received from the jurisdictions concerned. The review teams are also working on the assessment of the potential materiality of their findings, using quantitative bankspecific data that was provided by the authorities. An important element in the second phase of the assessment will be an onsite visit where the teams will discuss their findings with the authorities to further narrow down the materiality of the findings to arrive at a final assessment. The onsite visits are tentatively scheduled in June and July. The final report is expected to be submitted to the Basel Committee in September 2012, and will be published shortly thereafter. The absence of any item among the topics mentioned above does not necessarily mean that the review team will not add new items to the list of issues for further investigation during the progress towards the final report. European Union The review of the European Union (EU) rules related to Basel III has been plicated by the absence of a stable EU text implementing Basel III. As a pragmatic choice, the review team15 selected the Third Danish Presidency Compromise proposals16 for the basis of this interim report. This choice does not imply any endorsement by the assessment team of these proposals, but simply responds to the need to use the most recent draft such that the text remains stable for the time required to plete the interim review. At the time this interim report was prepared, the final version of CRD4/CRR – the rules for implementing Basel III in the European Union – were not yet published. Therefore Report to G20 Leaders on Basel III implementation 717 More recently, the EU has published a Fifth Danish Compromise text, EU Parliamentary proposals and the EC’s Framework for the recovery and resolution of credit institutions and investment firms. The review team has not had time to assess whether these latest developments are pliant with the Basel text for the interim report, rather these and/or and subsequent texts will form part of the final assessment 18 Explanatory notes were provided on the permanent partial use of the zero risk weight for sovereigns。 capital definition based on 14 criteria without the name mon shares。 flexibility。 and the impact of national macroprudential flexibility on both Home and Host Member States in the internal market context the number and nature of the findings set out in the Basel Committee’s final report may change substantially from those contained in this interim report to the extent that the final CRD4/CRR rules differ from the Third Danish Compromise Besides the changing nature of the EU proposals, the assessment has also been difficult due to the particularities of the EU rulemaking process. This meant that the European Commission (EC) was unable to plete the requested selfassessment questionnaire, beyond mapping the Basel framework to the July 2011 EC proposals and providing explanatory notes on the pliance of key areas of the EU regulation with Basel III18. Unlike the other assessments, which have benefited from country selfassessments, the EU review team has not been able to draw on a prehensive sel