GHOS Endorses Strategic Priorities and Work Program of BCBS
The Group of Central Bank Governors and Heads of Supervision (GHOS), which is the oversight body of BCBS, has endorsed the strategic priorities and work program of the Basel Committee for 2021–22. Consistent with the previous GHOS agreement, dated November 2020, to mark a clear end to the Basel III policy agenda, the new work program places high priority on the implementation and evaluation of previously agreed reforms, on assessing emerging risks and vulnerabilities, and increasing supervisory cooperation. The detailed work program will be published in April 2021.
BCBS will also keep monitoring the resilience of the global banking system as the COVID-19 pandemic continues to unfold, ensuring that banks contribute to the subsequent recovery sustainably. During the recent meeting, GHOS members also took the opportunity to exchange views on various ongoing global initiatives on non-bank financial intermediation (NBFI). NBFI now accounts for almost half of the global financial system and plays an increasing role in providing financing to the real economy. Banks and non-bank financial entities are interconnected through multiple channels. The safety and soundness of the NBFI sector is, therefore, important to the safety and soundness of the banking sector. GHOS members agreed that NBFI initiatives should take a holistic approach, as followed by FSB, considering the need to improve the resilience of NBFI, to minimize systemic risk and to meet other market-related objectives. Such initiatives should also safeguard the resilience and agreed prudential standards of the global banking system, which have been a critical support in the management of the COVID-19 crisis. Meanwhile, bank supervisors should continue to monitor NBFI developments to better gauge the range of direct and indirect interconnections with the banking system.
Related Links
Keywords: International, Banking, Basel, COVID-19, Work Program, Strategic Priorities, NBFI, GHOS, BCBS
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
FSB Report Examines Success of Too-Big-to-Fail Reforms for BanksRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
