Basel III / Basel IV — Capital and Liquidity Framework
|
|
| Regulator |
N/A |
| Jurisdiction |
Global |
| Status |
live |
| Applicability |
Platform |
Basel III is the international framework for bank capital adequacy, liquidity, and leverage, developed
by the Basel Committee on Banking Supervision (BCBS) and hosted at the Bank for International
Settlements (BIS). The finalised Basel III rules — informally called Basel IV — are phased in globally
from 2023 to 2028. Neither RBNZ nor APRA supervises against the BCBS standard directly: compliance
with Basel III is mandatory only as implemented through domestic law. In New Zealand, the framework
is implemented via RBNZ's Deposit Takers Act standards (DTA Capital, DTA Liquidity, DTA IRRBB). In
Australia, APRA implements it via the APS series. This register treats compliance as mandatory under
domestic law, not directly under the BCBS text.
The framework is organised under three pillars. Pillar 1 defines minimum capital and liquidity
requirements: CET1 ≥ 4.5% of RWA plus buffers (capital conservation buffer 2.5%, D-SIB surcharge),
Total Capital ≥ 8% of RWA, LCR ≥ 100%, NSFR ≥ 100%, and leverage ratio ≥ 3% Tier 1 / total
exposures. Pillar 2 covers the supervisory review process, including the Internal Capital Adequacy
Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP). Pillar 3 covers
public disclosure requirements — the Pillar 3 Report.
Domestic implementation
Compliance register
This register maps every material obligation under the Basel III framework to the platform control
or institutional process that satisfies it. It is the static traceability layer for the Totara
compliance report — dynamic data (module build status, test evidence, control test dates) is
overlaid at runtime.
Scope legend
| Symbol |
Meaning |
| 🤖 Automated |
Platform enforces or performs the obligation. Primary control mode is GATE, AUTO, CALC, or ALERT. Human action is not required in the normal case. |
| 📊 Evidenced |
Platform captures the evidence trail automatically. Human compliance decision sits on top. Primary control mode is LOG. |
| 🏛 Institutional |
Obligation is met by a process entirely outside the platform — board governance, CFO sign-off, regulatory submissions. Platform may generate evidence inputs but does not own the process. |
| N/A |
Obligation does not apply to this deployment configuration. |
Build legend
| Symbol |
Meaning |
| ✅ |
Module built and deployed |
| 🔨 |
Module planned — not yet built (build_status: Not started) |
| ❌ |
Uncontrolled gap — no module attributed |
Pillar 1 — Minimum capital requirements (RWA)
| Ref |
Obligation |
Scope |
Policy |
Platform controls |
Build |
| P1 — CET1 |
Maintain CET1 ratio ≥ 4.5% of RWA at all times; compute credit, market, and operational risk RWA under the applicable approach |
🤖 Automated |
CLQ-001 |
MOD-033 (CALC) — capital ratios computed from live exposure data, no manual risk weight application; MOD-033 (ALERT) — capital breach of minimum CET1 threshold triggers automatic Board notification |
🔨 |
| P1 — Total Capital |
Maintain Total Capital ratio ≥ 8% of RWA; Tier 2 capital correctly classified and deducted |
🤖 Automated |
CLQ-001 |
MOD-033 (CALC) — full capital stack (CET1, AT1, Tier 2) computed automatically from ledger positions |
🔨 |
| P1 — CET1 gate |
CET1 redemption requests that would breach the regulatory minimum must be blocked |
🤖 Automated |
CLQ-001 |
MOD-118 (GATE) — share redemption requests that would reduce CET1 below the regulatory minimum are blocked; redemption queue held until capital headroom is restored |
🔨 |
| P1 — Basel risk weights |
Risk weights applied consistently based on exposure class and external rating (standardised approach) or internal model (FIRB/AIRB) |
🤖 Automated |
CLQ-001 |
MOD-028 (CALC) — credit risk rating maps to Basel risk weight, feeds RWA calculation automatically; MOD-004 (CALC) — capital ratios calculated against currency-adjusted RWA |
🔨 |
| P1 — Stage 3 capital |
Stage 3 (credit-impaired) exposures appropriately reflected in RWA and capital deductions |
🤖 Automated |
CLQ-001 |
MOD-030 (CALC) — Stage 3 exposure feeds credit risk capital calculation, fully automated link; MOD-033 (CALC) — ECL stage data informs the credit risk capital overlay on the RWA calculation |
🔨 |
Pillar 1 — Liquidity standards (LCR / NSFR)
| Ref |
Obligation |
Scope |
Policy |
Platform controls |
Build |
| P1 — LCR |
Maintain LCR ≥ 100% (30-day liquidity coverage ratio); calculate and monitor daily |
🤖 Automated |
CLQ-002 |
MOD-032 (CALC) — LCR calculated from real data continuously, no manual spreadsheet, no T+1 lag; MOD-032 (ALERT) — LCR breach of RAF threshold triggers automatic escalation |
🔨 |
| P1 — NSFR |
Maintain NSFR ≥ 100% (net stable funding ratio); monitor against stable funding requirement |
🤖 Automated |
CLQ-002 |
MOD-032 (CALC) — NSFR calculated from real data continuously; MOD-032 (ALERT) — NSFR breach triggers automatic escalation |
🔨 |
Pillar 1 — IRRBB
| Ref |
Obligation |
Scope |
Policy |
Platform controls |
Build |
| P1 — IRRBB |
Measure EVE and NII sensitivity to interest rate shocks across prescribed scenarios; apply internal limits |
🤖 Automated |
CLQ-004 |
MOD-035 (CALC) — IRRBB metrics computed from live balance sheet positions, not a quarterly exercise; MOD-035 (ALERT) — EVE sensitivity breach of limit triggers automatic alert to ALCO and CRO |
🔨 |
| P1 — IRRBB disclosure |
IRRBB quantitative disclosures (EVE/NII under standard shocks) included in Pillar 3 Report |
🤖 Automated |
CLQ-004 |
MOD-035 (CALC) — IRRBB disclosures populated from model output, consistent with internal monitoring |
🔨 |
Pillar 2 — ICAAP and stress testing
| Ref |
Obligation |
Scope |
Policy |
Platform controls |
Build |
| P2 — Stress testing |
Conduct and document forward-looking capital stress tests under prescribed scenarios; link outputs to recovery planning |
🤖 Automated |
CLQ-003 |
MOD-034 (CALC) — stress test outputs documented and auditable; scenario inputs, model version, and results all logged |
🔨 |
| P2 — ICAAP stress |
ICAAP stress test section populated from quantitative model output, not manually assembled |
🤖 Automated |
CLQ-005 |
MOD-034 (CALC) — ICAAP stress test section populated from engine output, no manually assembled spreadsheet |
🔨 |
| P2 — FTP |
Funds transfer pricing encodes the liquidity premium for each tenor bucket; capital and liquidity costs are embedded in product pricing |
🤖 Automated |
CLQ-003 |
MOD-086 (CALC) — FTP rate grid encodes the liquidity premium charged to each tenor bucket; every product price embeds the cost of holding that liquidity position |
🔨 |
| P2 — ICAAP document |
Board-approved ICAAP document submitted to supervisor annually; narrative and quantitative sections prepared |
🏛 Institutional |
CLQ-005 |
MOD-034 and MOD-033 provide the quantitative inputs; narrative, board approval, and regulatory submission are institutional processes |
— |
| P2 — SREP |
Respond to supervisory review and evaluation; maintain dialogue with RBNZ / APRA on capital adequacy |
🏛 Institutional |
CLQ-005 |
MOD-036 (LOG) provides examination-ready data extracts; regulatory engagement is an institutional process |
— |
Pillar 3 — Public disclosure
| Ref |
Obligation |
Scope |
Policy |
Platform controls |
Build |
| P3 — Prudential returns |
Regulatory capital, liquidity, and IRRBB returns submitted to RBNZ / APRA on the prescribed schedule; figures consistent with internal monitoring |
🤖 Automated |
REP-002 |
MOD-036 (AUTO) — regulatory returns produced automatically on schedule, no manual data assembly; MOD-033 (CALC) — APRA ARS / RBNZ BS returns populated from the same RWA engine; MOD-035 (CALC) — IRRBB disclosures from model output; MOD-032 (CALC) — regulatory liquidity returns from the same calculation as internal monitoring; MOD-004 (CALC) — prudential returns include currency-split balance sheet |
🔨 |
| P3 — Data lineage |
Every figure in every return traceable to source ledger entry; data lineage maintained |
📊 Evidenced |
REP-002 |
MOD-036 (LOG) — data lineage from source to submitted return is maintained; MOD-004 supports multi-currency ledger tracing |
🔨 |
| P3 — Validation gate |
Automated validation rules catch data quality issues before submission |
🤖 Automated |
REP-002 |
MOD-036 (GATE) — automated validation rules catch data quality issues before submission, not after |
🔨 |
| P3 — Pillar 3 Report |
Annual Pillar 3 public disclosure document (capital ratios, RWA, leverage, remuneration); board-approved and published |
🏛 Institutional |
REP-002 |
MOD-033 and MOD-036 provide data inputs; board approval and publication on the bank's website are institutional processes |
— |
| Obligation |
Owner |
Platform evidence input |
| ICAAP document preparation, narrative, and board sign-off |
CRO / CFO / Board |
MOD-034 provides stress outputs; MOD-033 provides capital base |
| Pillar 3 Report preparation and publication |
CFO / Head of Investor Relations |
MOD-033, MOD-035, MOD-036 provide data inputs |
| Regulatory dialogue with RBNZ / APRA on SREP |
CEO / CRO |
MOD-036 provides examination-ready data extracts |
| Capital buffer management decisions (e.g. CCyB trigger responses) |
ALCO / Board |
MOD-032 and MOD-033 provide quantitative basis |
| Recovery plan approval and trigger governance |
Board |
MOD-034 stress outputs inform recovery triggers |
Coverage summary
| Area |
Total obligations |
Platform automated 🤖 |
Platform evidenced 📊 |
Institutional 🏛 |
N/A |
| Pillar 1 — Capital (RWA) |
5 |
5 |
0 |
0 |
0 |
| Pillar 1 — Liquidity |
2 |
2 |
0 |
0 |
0 |
| Pillar 1 — IRRBB |
2 |
2 |
0 |
0 |
0 |
| Pillar 2 — ICAAP / stress |
5 |
3 |
0 |
2 |
0 |
| Pillar 3 — Disclosure |
4 |
2 |
1 |
1 |
0 |
| Total |
18 |
14 (78%) |
1 (5%) |
3 (17%) |
0 |
All attributed modules are currently build_status: Not started — the compliance position will
update as modules are built and deployed.
| Policy |
Title |
| CLQ-001 |
Capital Adequacy Policy |
| CLQ-002 |
Liquidity Risk Management Policy |
| CLQ-003 |
Capital Planning & Stress Testing Policy |
| CLQ-004 |
Interest Rate Risk in the Banking Book (IRRBB) Policy |
| CLQ-005 |
Internal Capital Adequacy Assessment Process (ICAAP) Policy |
| REP-002 |
Prudential Reporting Policy |
See D01 Capital & Liquidity for the full risk domain.
Official documentation
Policies referencing this standard
- CLQ-001 — Capital Adequacy Policy
- CLQ-003 — Capital Planning & Stress Testing Policy
- CLQ-004 — Interest Rate Risk in the Banking Book (IRRBB) Policy
- CLQ-005 — Internal Capital Adequacy Assessment Process (ICAAP) Policy
- REP-002 — Prudential Reporting Policy
Compiled 2026-05-22 from source/entities/regulations/industry-basel-iii.yaml