BCBS to Consult on Pillar 3 Climate Risk Disclosures by End of 2023
The Bank for International Settlements (BIS) published a summary of the recent Basel Committee (BCBS) meetings, a report on central bank asset purchases in response to the COVID-19 crisis, a bulletin that discusses key issues surrounding the crypto market, and an update on a prototype for cross-border payments under Project Nexus.
At its March meetings, BCBS discussed its work related to the development of a Pillar 3 disclosure framework for climate-related financial risk, took stock of emerging risks to the banking system, and advanced review of Core principles for effective banking supervision. Below are the decisions and outcomes of these meetings:
- BCBS will issue a consultation paper on the Pillar 3 disclosure framework for climate-related financial risks by the end of 2023. This framework would complement, and be interoperable with, parallel disclosure initiatives under way by the International Sustainability Standards Board and other authorities.
- BCBS agreed to consult on revisions resulting from the ongoing review of the Basel Core Principles by mid-2023.
- BCBS approved a workplan to continue to assess and mitigate risks from crypto-assets to the global banking system. This includes a set of targeted reviews of the prudential treatment, including with regard to the treatment of permissionless blockchains and the eligibility criteria for "Group 1" stablecoins. BCBS will also continue to monitor bank crypto-asset activities and exposures, including their role as potential issuers of stablecoins and tokenized deposits, custodians of crypto-assets and interconnections with other nodes of the crypto-asset ecosystem.
- As part of the Regulatory Consistency Assessment Program, BCBS reviewed and approved the assessment reports on South Africa's implementation of the Net Stable Funding Ratio and large exposures framework. The reports will be published in April 2023.
Keywords: International, Banking, Basel, ESG, Climate Change Risk, Pillar 3, Disclosures, Reporting, Crypto-Assets, Project Nexus, PMI, BCPS, BCBS, BIS
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous ArticleUK Updates Green Finance Strategy, Proposes ESG Ratings Regime
ECB Finds Banks Unprepared for Pillar 3 Climate Risk Disclosures
The European Central Bank (ECB) published results of the 2022 supervisory assessment of climate-related and environmental risk disclosures among significant institutions (103) and a selected number of less significant institutions (28).
NCUA Assesses Credit Union Exposure to Climate-Related Physical Risks
The National Credit Union Administration (NCUA) released a Research Note that examines the exposure of credit unions to climate-related physical risks. In a related development
EBA Issues Multiple Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) is seeking comments, until July 31, 2023, on the draft Guidelines on the proposed common approach to the resubmission of historical data under the EBA reporting framework.
EC Adopts Regulation on Own Funds, Issues Other Updates
The European Commission adopted Delegated Regulations on own funds and eligible liabilities, on requirements for the internal methodology under the internal default risk model
CDP Platform to Report Plastic-Related Impact, Issues Other Updates
The Carbon Disclosure Project (CDP) announced that its global environmental disclosure platform has enabled reporting on plastic-related impact for nearly 7,000 companies worldwide
IASB to Enhance Reporting of Climate Risks, Proposes IFRS 9 Amendments
The International Accounting Standards Board (IASB) updated its work plan to enhance the reporting of climate-related risks in the financial statements,
BIS Addresses Data Gaps and Macro-Prudential Policy for Climate Risks
The Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) published a brief paper that examines challenges associated with the use of macro-prudential policies to address climate-related financial risks.
FCA Sets Out Business Plan, Launches TechSprint on Greenwashing
The Financial Conduct Authority (FCA) published its business plan for 2023-24. The plan sets out details of the work planned for the next 12 months to achieve better outcomes for consumers and markets
UK Committee Sets Out Recommendations for Next Phase of Open Banking
The Joint Regulatory Oversight Committee (JROC), comprising the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) as co-chairs and the HM Treasury and the Competition and Markets Authority (CMA) as members
ECB Publishes Multiple Regulatory Updates for Banking Institutions
The European Central Bank (ECB) published the results of the 2022 climate risk stress test of the Eurosystem balance sheet,