Basel capital framework national discretions

The Basel capital framework contains a number of national discretions to allow the standards to be implemented differently by authorities in different jurisdictions. This can be useful when differences in the structure and development of financial systems warrant different approaches. In practice, however, the Committee recognises that the use of national discretions can also impair the comparability of implementation across jurisdictions, particularly if supervisors do not implement them with the same conservatism. This was highlighted by three recent studies on the variation of risk-weighted assets in the banking book and trading book.
(Texto en inglés)