BCBS Publishes Summary of the Meeting in June 2019
BCBS published a summary of its June meeting in Basel. At the meeting, BCBS members discussed a range of policy and supervisory issues and took stock of the members' implementation of post-crisis reforms. This was the first Basel Committee meeting chaired by Pablo Hernández de Cos, Governor of the Bank of Spain, following his appointment by Governors and Heads of Supervision in March 2019. The Committee discussed matters related to financial technology and crypto-assets and its work program for evaluating the impact of its post-crisis reforms, with the Committee committing to publish additional information of this work in due course.
At the meeting, the Committee:
- Agreed on a targeted and limited revision of the leverage ratio to allow margin received from a client to offset the exposure amounts of client-cleared derivatives. This revision, which will be published next week, seeks to balance the robustness of the leverage ratio as a safeguard against unsustainable levels of leverage with the G20 Leaders' commitment to promote the central clearing of standardized derivative contracts. The Committee will monitor the effect of this revision on the leverage ratio framework.
- Agreed on a set of disclosure requirements to curb leverage ratio window dressing. The standard will be revised to require banks to disclose their leverage ratios based on the quarter-end and average values of securities financing transactions. These disclosure requirements will be published next week.
- Approved a report on Pillar 2 supervisory practices and approaches, which will be published shortly.
- Reviewed the reports that assessed the implementation of the Net Stable Funding Ratio and large exposures standards in Australia, Canada, and India. Publication of these reports is expected in July.
- Agreed to join Network for Greening the Financial System (NGFS) as an observer, post discussions on the implications of the first comprehensive NGFS report.
- Agreed to conduct further work on financial technology, including on the risk management challenges associated with the use of artificial intelligence and machine learning in financial services.
- Will continue to assess the risks from crypto-assets and the best ways to address them.
- will publish, in due course, a a report on the regulatory and supervisory implications of open banking and application programming interfaces.
Related Link: Press Release
Keywords: International, Banking, Fintech, Crypto-Assets, Pillar 2, Leverage Ratio, Disclosures, Large Exposures, Climate Change Risks, BCBS
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
IOSCO Report Examines Liquidity in Corporate Bond MarketsRelated Articles
BIS Innovation Hub Sets Out Work Program for 2021
BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.
EC Plans to Consult on Crisis Management and EDIS Framework Revisions
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EBA Finalizes Remuneration Standards for Investment Firms in EU
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
ECA Recommends Actions to Enhance Resolution Planning for Banks
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE Publishes Key Elements of the 2021 Stress Testing for Banks in UK
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA Proposes Rules on Identity Verification of Depositor Protection
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB Publishes Work Program for 2021
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA Issues Update on Move to New Data Collection Platform
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank Publishes Derivation Rules for Reporting by Banks
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED Revises Capital Planning and Stress Testing Requirements for Banks
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
