BIS Final Rules

Key dates

2025-06-01

Basel Committee consultation on the proposed technical amendment was issued in June 2025

2026-03-23

Basel Committee finalized the technical amendment and related FAQs

2029-03-23 Deadline

Latest date by which Basel Committee members agreed to implement the technical amendment

Suggested considerations

• Compliance teams may wish to map the amended operational risk text into internal capital calculation policies and control documentation.
• Firms should consider whether any existing business indicator calculations or interpretations rely on the previously ambiguous operational risk wording.
• Risk and regulatory reporting teams may wish to review the finalized market risk FAQ and related FAQ updates for any knock-on effects on methodology documentation.
• Implementation planning may need to account for local transposition or supervisory timelines, with the Basel Committee indicating implementation within three years at the latest.

What changed

The technical amendment is limited to a clarification in the standardized approach to operational risk rather than a substantive policy rewrite. The source summary indicates the amendment addresses an ambiguity in the existing text that could not be resolved unambiguously under the prior wording, and it specifically relates to the operational risk standardized approach. The document also includes a finalized response to one FAQ on the standardized approach to market risk, together with consequential amendments to related FAQs.

Key dates

2024-11-27

The technical amendment was published for consultation

2025-01-31 Deadline

Comment deadline on the consultation version

2025-10-28

The BIS page reflects the final consolidated standard

2028-11-01 Deadline

Committee members agreed to implement the revised standard by this date at the latest

Suggested considerations

• Compliance teams may wish to identify derivative portfolios where fixed or capped guarantees or credit derivatives are used as CCR hedges under SA-CCR or IMM.
• Firms should consider reviewing capital calculation logic and documentation for protected and unprotected exposure portions to confirm the final Basel treatment is reflected.
• Banks may wish to assess whether any legacy policy, model, or reporting language still references the consultation version and needs updating ahead of implementation.
• Risk and capital teams should consider whether exclusions for securities financing transactions and securitisation exposures are correctly applied in governance, procedures, and systems.

What changed

The amendment clarifies the treatment of guarantees and credit derivatives that hedge counterparty credit risk of derivative exposures subject to the standardized approach to counterparty credit risk or the internal models method. The Basel text indicates the final standard aligns the treatment of fixed or capped protection more closely with the treatment of eligible collateral and residual risk to the original counterparty.