Basel III is the Basel Committee on Banking Supervision's (BCBS) comprehensive package of reforms which, in particular, aims to strengthen solvency and liquidity in the banking sector.
In November 2017, the Federal Council decided to incorporate further elements of Basel III into national law. As of 2018, core capital must amount to at least 3% of total exposure (leverage ratio). The special requirements of up to 10% for systemically important banks remain. As of 2019, the new risk diversification regulations will also come into force and the Liquidity Coverage Ratio (LCR) must be fully achieved by then. In November 2019, the Federal Council announced that the introduction of the net stable funding ratio (NSFR) is planned for mid-2021.
Due to the impact of Covid-19, the Basel Committee on Banking Supervision decided on 27 March 2020 to extend the implementation period of Basel III by one year in order to free up additional resources, both for authorities and banks. Implementation in Switzerland will take place through an amendment to the Capital Adequacy Ordinance, which is expected to come into force on 1 January 2025.