Implementation Roadmap

The revised framework will combine the capital requirements from both Basel II and Basel III and will be implemented in three phases: (i) minimum capital requirements, (ii) supervisory review process, and (iii) market discipline.

First Phase: Minimum Capital Requirement
This phase corresponds to Pillar 1 of the Basel Accords, which relates to the calculation of minimum capital requirements based on the quantification of credit, market and operational risks.

The first phase has commenced and is scheduled to be completed by March 2020.

Second Phase: Supervisory Review Process
This phase corresponds to Pillar 2 of the Basel Accords, which focuses on the Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP).

The second phase is expected to last 18 months, with implementation commencing in March 2020 and expected completion date by late 2021.

Third Phase: Market Discipline
This phase corresponds to Pillar 3 of the Basel Accords, which imposes strong incentives on banks to conduct their business in a safe, sound and efficient manner by requiring additional disclosures.

The third phase is expected to last 6 months, with implementation commencing in mid-2021 and expected completion date by December 2021.