Featured Product

    BCBS Met, Discussed COVID Impact and Finalized CVA Risk Framework

    June 17, 2020

    BCBS held meetings to discuss a range of policy issues and to review the impact, to date, of the COVID-19 pandemic on the global banking system. In addition to its discussion related to COVID-19, BCBS approved final revisions to the credit valuation adjustment risk framework, which will be published in the coming weeks. In another key development, BCBS approved a technical amendment on the prudential treatment of non-performing loan securitizations, which will be published for consultation next week.

    The following are the additional outcomes of the meetings:

    • BCBS reviewed the responses received to its discussion paper on the prudential treatment for crypto-assets and approved a workplan for the next phase of the work, with a view to future consultation. 
    • Upon reviewing the domestic regulatory and supervisory measures taken by members in response to the crisis, BCBS agreed to submit a stocktake of these measures to FSB for the report to the G20 Finance Ministers and Central Bank Governors' virtual meeting in July 2020.
    • Members took stock of banks' progress on benchmark rate reforms and discussed potential regulatory implications stemming from banks' transition to alternative reference rates. BCBS places high priority on this issue and expects all banks to be adequately prepared to meet the transition timeline. 
    • BCBS viewed a measured draw-down of the Basel III buffers of banks to meet these objectives as both anticipated and appropriate in the current period of stress. It highlighted that supervisors will provide banks sufficient time to restore buffers taking account of economic and market conditions and individual bank circumstances.
    • BCBS will continue to coordinate the work on cross-sectoral financial issues with the FSB and other standard-setting bodies.

    The current crisis underscores the importance of a resilient banking system and a prudent regulatory framework. The measures taken by BCBS at the onset of the pandemic have helped mitigate some of the short-term financial stability risks. All members reaffirmed their expectation of full, timely, and consistent implementation of all Basel III standards based on the revised timeline endorsed by the Group of Governors and Heads of Supervision. The impact and response of pandemic vary across jurisdictions and the global economic outlook remains uncertain. Banks and supervisors must remain vigilant to the risks and vulnerabilities stemming from the pandemic to ensure that the global banking system remains financially and operationally resilient. BCBS will continue to monitor the vulnerabilities and risks to the global banking system from COVID-19 and will pursue additional measures if needed.

     

    Related Link: Press Release

     

    Keywords: International, Banking, COVID-19, Basel III, CVA Risk, NPL, Securitization, Crypto Assets, Benchmark Reforms, BCBS

    Featured Experts
    Related Articles
    News

    EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package

    EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.

    February 26, 2021 WebPage Regulatory News
    News

    EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway

    The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.

    February 25, 2021 WebPage Regulatory News
    News

    PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks

    In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.

    February 25, 2021 WebPage Regulatory News
    News

    FSB Sets Out Work Priorities for 2021

    In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.

    February 25, 2021 WebPage Regulatory News
    News

    EU Publishes Corrigendum to Revised Capital Requirements Regulation

    EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).

    February 25, 2021 WebPage Regulatory News
    News

    ESAs Issue Statement on Application of Sustainability Disclosures Rule

    ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).

    February 25, 2021 WebPage Regulatory News
    News

    EC Consults on Crisis Management and Deposit Insurance Frameworks

    EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.

    February 25, 2021 WebPage Regulatory News
    News

    HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs

    HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.

    February 24, 2021 WebPage Regulatory News
    News

    EBA Proposes Standards for Supervisory Cooperation Under IFD

    EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.

    February 24, 2021 WebPage Regulatory News
    News

    BoE Addresses Banks in Scope of First Resolvability Assessment

    BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.

    February 24, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6629