To date, this has focused on capital, but will be expanded over the next year to encapsulate local implementation of the LCR, as well as the frameworks for global and domestic systemically important banks (G-SIBs and D-SIBs), since these come into effect over the next couple of years;  •  undertake a full set of implementation assessments for 2013. We will conduct reviews of Singapore, Switzerland, China, Australia, Brazil and Canada. Follow-up  2  BIS central bankers’ speeches  reviews of the European Union and the United States are also planned once their Basel III regulations are finalised; and •  publish a report on the initial, detailed review of risk-weighted asset calculations for the banking book; we hope to publish the full results by the summer. Together with the recently published results on the trading book, this analysis identifies the specific drivers that lead to variations in risk weights for similar exposures. The Committee’s next step will then be to consider policy responses to reduce any unwarranted variability and to therefore improve the comparability of banks’ ratios. A theme I will be returning to is the importance of this implementation monitoring work for the Committee. While it is a relatively new component of the Committee’s mandate, it should not be seen as an adjunct to the Committee’s standard-setting role. Rather, it is absolutely critical to successfully delivering desired policy outcomes. Where to next?
But one point I would stress is that whatever we decide upon, it will be designed to strengthen the current framework, and there is nothing that is being proposed that should give reason to hold off on the implementation of Basel III and other recently agreed reforms. BIS central bankers’ speeches  5  Enhancing the effectiveness of both micro- and macroprudential supervision Not surprisingly, the Committee’s agenda in the past few years has been dominated by policymaking. In 2012, implementation also came to the fore. But it is perhaps stating the obvious that effective supervision is the key to ensuring that regulation, once implemented, continues to work as intended. Only if supervisors are given the tools they need to act can they effectively perform their role. As the policy reform agenda moves towards completion, and the new rules are rolled out by national regulators, the Committee will increasingly turn its attention to enhancing supervisory practices. Enhancing microprudential supervision The Committee has a great deal of guidance on supervisory matters already on issue. However, much of this was developed before the financial crisis and will benefit from being updated to reflect lessons learned in recent years. Given the general applicability of much of this material, the benefits of this work will also extend well beyond Basel Committee member countries. As with all multi-year projects, this will require prioritisation. Near-term attention is likely to be given to operational risks (internal controls and information technology), governance, supervisory colleges, stress testing and dealing with weak banks.