Basel III
Overview
Basel III is a set of international standards issued by the international standard-setting body, the Basel Committee on Banking Supervision (Basel Committee). These standards aim to make banks safer and address issues identified during the financial crisis, to strengthen financial stability in Jersey.
We are looking to implement the Basel III framework, in a way that is efficient and effective. The framework will work against a backdrop of international implementation, and we would like to consult industry on this matter.
All major financial centres have committed to the implementation of Basel III. As a registered person under the Banking Law, it is anticipated that you will be subject to Basel III over the next few years.
The Basel III Roadmap
Timeline
Progress
2026
16 January 2026
Our latest consultation sets out proposals to align Jersey’s regime with Basel III requirements in the areas of:
- market risk, trading book and counterparty credit risk
- large exposures
- securitisation
- capital and ratios
The consultation also covers general matters, including updates on the:
- Prudential Regulation Authority’s recent policy statement PS19/25
- use of credit ratings
Read our consultation on the Basel III Prudential Roadmap: large exposures and general matters.
8 January 2026
We have published our feedback paper summarising and responding to your views on our Basel III proposals regarding:
- advanced approaches to credit risk and the output floor
- systemic importance and buffers
- the Net Stable Funding Ratio (NSFR)
- the leverage ratio
2025
12 August 2025
We have published a consultation on the further implementation of Basel III. Submit your feedback on our proposals regarding:
- advanced approaches to credit risk and the output floor
- systemic importance and the systemic buffer
- the Net Stable Funding Ratio
- the leverage ratio
3 July 2025
We have published feedback on our Basel III Prudential Roadmap consultation, outlining your feedback to our proposals on the standardised approaches to credit risk (SACR), operational risk (SAOR) and large exposures.
Read our Basel III Prudential Roadmap: 2024 H2 feedback.
2024
18 December 2024
In line with our Prudential Roadmap timeline, we have published a consultation and invite your feedback on our proposals to implement updates to:
- the Standardised Approach to Credit Risk
- the Standardised Approach to Operational Risk
- Large Exposures regulations
Read our Basel III Prudential Roadmap: 2024 H2 consultation.
31 October 2024
On 31 October, we published near-final versions of the updated:
-
Guidance Note: Approval of Concession Limits for Governments and Connected Banks
- Guidance Note: Prudential Reporting of Credit Risk under the Standardised Approach to Credit Risk
1 October 2024
This year, we have published two consultation papers on the implementation of Basel III in Jersey.
Industry feedback on both consultations was broadly positive. As a result, we will proceed with the Roadmap as set out.
Based on the feedback received on our quick wins consultation paper, we have revised our position on:
- capital minima and the capital conservation buffer
- liquidity coverage ratios
- large exposures
Read our full feedback paper for details: Basel III feedback paper
25 April 2024
We have published a new consultation paper proposing the adoption of certain Basel III Framework elements outlined in our 2021 position paper, considering the feedback from 2021.
Read our Basel III: immediate implementation (quick wins) consultation paper.
25 March 2024
In our continued commitment to meeting international standards for prudential supervision, we have published our proposed roadmap for implementing the final set of Basel III reforms. A stable framework is important to support the provision of banking services to our island’s economy, consumers, and financial services providers.
Read our Basel III Prudential Roadmap.
Historic updates
Before 2024, we had already made progress in implementing the LCR and aligning capita definitions as well as making substantial revisions to the Pillar 2 requirements, including recovery planning. For the NSFR and the leverage ratio, we had mandated reporting but not any minima.
In 2019, we consulted on the other elements, drawing on the Basel Committee’s finalisation of proposals.
Consultation on Basel lll No. 7 2019 (jerseyfsc.org)
Feedback to consultation on Basel III No 7. 2019 (jerseyfsc.org)
We then published a position paper in 2021, developing some of these areas further:
Basel III Further Proposals 2021 (jerseyfsc.org)
This work ultimately led to creation of the Basel III Roadmap in 2024, which sets out how we would deliver our transition to Basel III.
Near final documentation
Capital
Capital requirements
Required level of own funds part
Risk-based capital requirements part
Operational risk
Credit risk
Credit risk: standardised approach (CRR) part
Credit risk: internal ratings based approach (CRR) part
Credit risk: general provisions (CRR) part
Credit risk mitigation (CRR) part
Market risk
Standardised approach to market risk part
Counterparty credit risk
Leverage ratio
Leverage capital requirements and buffers part
Large exposures
Variances for exposures to group counterparties guidance note
Net stable funding ratio
The net stable funding ratio part