Featured Product

    BIS Hub Announces TechSprint on CBDCs, Publishes Multiple Reports

    April 25, 2022

    This month, the Bank for International Settlements (BIS) published papers on supervisory practices for assessing sustainability of bank business models, business continuity planning at central banks, and certain aspects of central bank digital currencies (CBDC). The BIS Innovation Hub and Bank Indonesia also announced a G20 TechSprint with a view to developing new solutions for CBDCs.

    The key highlights of the aforementioned publications follow:

    • The Financial Stability Institute (FSI) of BIS published a paper that examines the supervisory practices for assessing the sustainability of the business models of banks. Through this, the paper aims to identify practices that might be relevant to authorities seeking to explicitly introduce business model analysis in their supervisory review process. To this end, the paper emphasizes practical aspects of business model analysis, including processes and procedures for developing and conducting a such an analysis and for integrating the outcomes into the overall supervisory review process. It also notes that granular and good-quality data, adequate data aggregation capabilities, and expert judgment are indispensable elements of an effective business model analysis framework. The paper concludes that business model analysis has the potential to enhance bank supervision and make it more effective, proactive, and forward-looking.
    • The report on business continuity planning focuses on how business continuity planning at BIS member central banks in the Americas has changed since the beginning of the COVID-19 pandemic. This report is published by the Consultative Group on Risk Management established at the BIS Representative Office for the Americas. The report notes that, following the eruption of the pandemic, organizations have identified, or are in the process of identifying, key actions that will allow them to strengthen their operational continuity strategies and incorporate mechanisms to develop their operational resilience holistically.
    • With respect to the CBDCs, FSI published a paper that examines CBDC as a tool to promote financial inclusion while BIS published a set of working papers that examine the work being being done by the emerging market economy central banks with respect to the CBDCs. Finally, the BIS Innovation Hub and Bank Indonesia launched the third G20 TechSprint Initiative as one of the side events of Indonesia's G20 Presidency, focusing on developing new solutions for CBDCs. The three problem statements for the TechSprint involve enabling financial inclusion, improving interoperability of payment systems, and building effective and robust means to issue, distribute, and transfer CBDCs. The shortlisted teams will showcase their prototypes in July 2022 and and independent panel will announce winners in October 2022.

     

    Related Links

     

    Keywords: International, Banking, Business Continuity, CBDC, Financial Inclusion, Financial Stability, TechSprint, G20, Business Models, Banking Supervision, Regtech, Suptech, Operational Resilience, Operational Risk, Basel, PMI, FSI, BIS

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8280