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

    HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration

    The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.

    July 29, 2021 WebPage Regulatory News
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    ECB Study Assesses Impact of Basel III Finalization Package

    The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.

    July 26, 2021 WebPage Regulatory News
    News

    ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading

    The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.

    July 26, 2021 WebPage Regulatory News
    News

    PRA Updates Remuneration Policy Statement Templates and Tables

    The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.

    July 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7307