The national implementation will start on 1 January 2013. Thus, legislation and regulations will have to be amended during the period prior to that date. From 1 January 2013 onwards, banks will have to meet the following minimum capital requirements expressed in risk-weighted assets: 3.5% share capital, 4.5% Tier-1 capital and 8% total capital. During the transitional period from 1 January 2013 up to and including 2019, these ratios will gradually be stepped up to 4.5% share capital, 6% Tier-1 capital and 8% total capital.
The conservation buffer will be build up along gradual lines to a percentage of 2.5%. from 1 January 2016 through 1 January 2019. Thus, banks will ultimately have to hold 10.5% of their total capital expressed in risk-weighted assets.
National supervisors will gradually introduce additional allowable deductions from bank capital such as deferred tax assets and investments in financial institutions from 1 January 2014 through 1 January 2018.
As regards the introduction of the Leverage Ratio, from 1 January 2011 onwards the supervisor will concentrate on the development of templates to consistently monitor the components of this ratio. The period from 1 January 2013 through 1 January 2017 will be a parallel run period. During this period, the development of the Leverage Ratio will be monitored. The intention is to migrate the Leverage Ratio into the Pillar 1 requirements as from 1 January 2018.
As from 2011, the Liquidity Coverage Ratio will be monitored by both the Basel Committee and the supervisor in order to officially make it mandatory with effect from 1 January 2015. The Net Stable Funding Ratio will be introduced as a minimum standard as from 1 January 2018.