Featured Product

    BCBS to Advance Work on Suptech, Climate Risk, and Basel Monitoring

    April 16, 2021

    BCBS has set out the strategic work priorities, as part of its the work program for 2021-22. Going forward, the Basel III-related work will focus on monitoring the full, timely, and consistent implementation of standards by the Basel Committee members and completing an evidence-based evaluation of the effectiveness of these Basel reforms. Other strategic priorities involve ensuring recovery and resilience post COVID-19, addressing technology and climate-related risks, and increasing supervisory cooperation in the areas of technology, operational resilience, and data governance.

    The work program, which was recently endorsed by GHOS, is focused on the following three key themes:

    • Resilience and recovery from COVID-19 crisis. Work in this area includes monitoring and assessing risks and vulnerabilities to the global banking system, drawing on supervisory insights, and conducting thematic assessments. Where deemed relevant, BCBS stands ready to deploy additional policy and/or supervisory measures to mitigate these risks. BCBS will monitor the implementation and unwinding of domestic measures taken by members during the pandemic, with a view to a consistent implementation of the Basel III framework. In parallel, BCBS is conducting an evaluation of the initial lessons learned from COVID-19 with regard to the Basel III standards. An interim report on this analysis will be finalized by the Summer of 2021 and will be followed by subsequent updates. The findings of BCBS will also form part of the interim and final reports of FSB to the G20 leaders.
    • Mitigation of medium-term risks and trends. BCBS will pursue a forward-looking approach to identifying, assessing, and mitigating medium-term risks and structural trends to the banking system. This includes work related to the ongoing digitalization of finance, climate-related financial risks, and the impact of a low-for-long interest rate environment on business models of banks. BCBS will also finalize outstanding initiatives related to mitigating risks and structural trends, such as the prudential treatment of banks' crypto-assets exposures and banks' disclosure requirements for market risk and sovereign exposures.
    • Strengthening of supervisory coordination and practices. BCBS will pursue a range of initiatives aimed at strengthening supervisory coordination and practices. The use of artificial intelligence/machine learning in banking and supervision, along with broader issues related to the use of technology in supervision (suptech) is on the agenda. Focus areas will also include leveraged lending and collateralized loan obligations, data and technology governance by banks, and insights and supervisory approaches on operational resilience, with a focus on cyber security. BCBS will continue to cooperate with other global standard-setting bodies and international fora on cross-sectoral supervisory issues, including cross-border payments, nonbank financial intermediation, benchmark rate transition and foreign-exchange settlement risk. BCBS will pursue further initiatives to promote the role of proportionality in bank regulation and supervision, including publishing the results of a survey on current and prospective plans for proportionality for 90 jurisdictions, conducted jointly with the World Bank. Building on this stocktake, BCBS plans to develop practical guidance on the use and design of a proportionate regulatory and supervisory framework, for voluntary use by jurisdictions. 

     

    Related Links

    Keywords: International, Banking, Work Program, COVID-19, Climate Change Risk, Market Risk, Operational Resilience, Suptech, Cyber Risk, Data Governance, Basel, Disclosures, BCBS

    Featured Experts
    Related Articles
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    News

    OSFI to Communicate Next Steps on Climate Risk Policy in Early 2022

    In a letter to the federally regulated financial institutions and pension plans, the Office of the Superintendent of Financial Institutions (OSFI) published a summary of the feedback received to the January 2021 discussion paper on ways to address climate risks.

    October 12, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7568