Regulatory Alerts2014-07-04 | BSD/GCA/BAS/CON/01/115Extension of Parallel Run of Pillar I of Basel II Implementation
In December 2013, the Central Bank of Nigeria (CBN) introduced guidelines for Basel II/III implementation in the banking sector, directing banks to commence a parallel run of Pillar I in January 2014. Due to initial challenges, the CBN has extended the parallel run by three months, with full adoption beginning on October 1, 2014. During this time, banks are required to reassess their capital levels to meet minimum requirements and continue submitting monthly returns.
09-46236425 09-46236418 BSD/GCA/BAS/CON/01/115 July 02, 2014 LETTER TO ALL BANKS AND DISCOUNT HOUSES EXTENSION OF PARALLEL RUN OF PILLAR I OF BASEL II IMPLEMENTATION It would be recalled that the Central Bank of Nigeria (CBN) released the guidelines on the implementation of Basel II/III for the Nigerian Banking Sector in December 2013 and directed banks to commence the parallel run of Pillar I in January, 2014 while the full adoption was intended to commence by the end of June, 2014. However, the initial challenges observed in the parallel run have necessitated for an extension of the parallel run particularly with regards to the requirements of reporting capital charge for credit, market and operational risks.
Consequently, banks are hereby directed to continue the parallel run for an additional period of three (3) months while the full adoption will commence on 1 st October, 2014.
Meanwhile, banks are required to use this period to re-assess their current capital levels with a view of complying at full adoption, with the minimum capital requirements.
Finally, all banks are reminded to continue to submit their monthly returns to bsdreturns@cbn.gov.ng on or before the fifth working day after each reporting month. Thank you. Yours faithfully, TOKUNBO MARTIN (MRS) DIRECTOR OF BANKING SUPERVISION