BCBS 205

From Open Risk Manual


BCBS 205 is a document published by the Basel Committee on Banking Supervision on October 2011 in the Basel III category.


Treatment of trade finance under the Basel capital framework.


Note: Basel III revisionspublished in December 2017 incorporate these provisions.

The Basel Committee on Banking Supervision has evaluated the impact of Basel II and Basel III on trade finance in the context of low income countries. As a result, it adopted two technical changes to the Basel regulatory capital adequacy framework related to the treatment of trade finance that will help promote trade with low income countries. The Committee conducted its evaluation in consultation with the World Bank, the World Trade Organisation and the International Chamber of Commerce. The agreed changes will improve the access to and lower the cost of trade finance instruments for low income countries.

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