REPORT ON THE STATUS OF IMPLEMENTATION OF THE BASEL STANDARDS IN LATIN AMERICA AND THE CARIBBEAN 2022

The report shows the most important findings with regards to the implementation status of the Basel standards, and the potential importance of developing a proportional regulatory framework in the region.

The report is divided into three sections. The first section provides a general perspective on regulation, including the main Basel framework on which regulation is based in the different jurisdictions and how the region applied proportionality in regulation. The second section examines the standards’ implementation status corresponding to Pillar 1 of the Basel standards. That is, the definition of regulatory capital, capital requirements for risk coverage, and leverage. Finally, the third section analyzes the implementation of the four main principles that comprise Pillar 2 of the Basel standards.