Colombia has published a technical document containing new capital criteria following Basel III recommendations for entities in the financial system.

The document is a draft decree and outlines requirements for the implementation of capital cushions, the alignment with Basel III solvency ratio definitions and the updating of the measurement of assets weighted by credit risk level.

It was published by the country's Financial Regulation Unit, or URF, and the document is open for comments until June 18.

According to the URF, the impact of the new capital rules "may be moderate for most entities. However, a transition regime is contemplated for entities that may require significant adjustments."