BCBS Publishes an Outline of Discussion at its Meeting in Basel

With regard to the current policy work, the Committee agreed to consult on a set of limited and targeted revisions to the revised market risk framework, which was published in January 2016. The Committee also agreed on a set of criteria and capital treatment for short-term simple, transparent, and comparable securitizations, for which the accompanying standard will be published in due course. Additionally, the Committee agreed on a revised assessment framework for global systemically important banks, which will soon be published. Furthermore, the Committee approved, for publication, a report on early supervisory intervention practices. It has been decided that a revised version of the work program, including a version for publication, will be submitted to the BCBS oversight body, which is the Group of Central Bank Governors and Heads of Supervision, for endorsement. The work program of the Committee centers on four broad themes:

• Finalizing existing policy initiatives and initiating targeted policy development
• Ensuring full, timely, and consistent implementation of the post-crisis reforms
• Promoting strong supervision
• Evaluating and monitoring the impact of post-crisis reforms, in addition to assessing emerging risks

Other topics of discussion at the meeting included an agreement to explore ways to conduct preliminary consistency assessments of members' forthcoming draft rules to implement the final Basel III standard (December 2017) and an agreement to further assess the identified transactions and behavioral responses by banks that could potentially constitute a form of regulatory arbitrage. Views were also exchanged on the recent market and supervisory developments, including the impact on the banking system of volatility in financial markets in the first quarter of 2018 and implications of the emergence of crypto-assets

Related Link: Press Release

Keywords: International, Banking, Work Program, Basel III, Implementation of Reforms, Priorities, BCBS