From Open Risk Manual


BCBS D425 is a document published by the Basel Committee on Banking Supervision on December 2017 in the Credit Risk category.


The regulatory treatment of sovereign exposures - discussion paper.


In January 2015, the Basel Committee on Banking Supervision set up a high-level Task Force on Sovereign Exposures to review the regulatory treatment of sovereign exposures and recommend potential policy options. The Task Force's report analysed issues concerning the regulatory treatment of sovereign exposures in the Basel framework. This discussion paper is derived from the Task Force's report.

The Committee's view is that the issues raised by the Task Force and the ideas outlined in this paper are important, and could benefit from a broader discussion. However, at this stage the Committee has not reached a consensus to make any changes to the treatment of sovereign exposures, and has therefore decided not to consult on the ideas presented in this paper.

The views of interested stakeholders will nevertheless be useful in informing the Committee's longer-term thinking on this issue. The Committee welcomes comments, which should be uploaded hereby Friday 9March 2018. All comments will be published on the website of the Bank for International Settlements unless a respondent specifically requests confidential treatment.

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