Scope of application

96. The application of the framework follows the scope of application set out in the Basel II framework [See International Convergence of Capital Measurement and Capital Standards: A Revised Framework - Comprehensive Version, June 2006,]. The framework should be applied to all large internationally active banks on a consolidated basis, but may also be used for other banks and on any subset of entities of internationally active banks, so as to ensure greater consistency and a level playing field between domestic and cross-border banks.

97. The implementation of these principles should be commensurate with the bank’s nature, size and complexity as well as its structure, economic significance and general risk profile. This requires that supervisors gauge their responses where appropriate for banks with low IRRBB profiles. In particular, supervisors will focus on systemic risks that are inherent in large, complex or internationally active banks.

Implementation timeline

98. The banks are expected to implement the standards by 2018. Banks whose financial year ends on 31 December would have to provide the disclosure in 2018, based on information as of 31 December 2017.