BCBS published a summary of its June meeting, wherein the Committee met to take stock of COVID-19 risks to the banking system and to discuss policy and supervisory initiatives. BCBS reviewed provisioning practices and stressed the importance of using capital and liquidity buffers, reviewed the interim report evaluating impact of Basel framework during Covid-19, and agreed to hold public consultation on the prudential treatment of cryptoasset exposures. The consultation paper is expected to be published this week.
Although banks' exposures to cryptoassets are currently limited, the continued growth and innovation in cryptoassets and related services, coupled with the heightened interest of some banks, could increase global financial stability concerns and risks to the banking system in the absence of a specified prudential treatment. Thus, BCBS has agreed to hold a public consultation to seek the views of external stakeholders on the design of prudential treatment of banks' exposures to cryptoassets. BCBS also plans to publish, in July 2021, a report that provides a preliminary assessment of the impact of the implemented Basel III standards during the pandemic. The interim report forms part of the Committee's broader work program on evaluating its post-crisis reforms and the elements of its findings will be included in the FSB's interim report to G20 Finance Ministers and Central Bank Governors on the financial stability lessons learned from COVID-19.
Related Link: Press Release
Keywords: International, Banking, COVID-19, Basel, Regulatory Capital, Crypto Assets, Cyber Risk, BCBS
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleHKMA Sets Out Fintech Strategy for Coming Years
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.
The Australian Prudential Regulation Authority (APRA) updated the list of authorized deposit-taking institutions, granting license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.