Featured Product

    BCBS Advances Work on Climate Risk, Cryptoassets, and G-SIB Assessment

    November 09, 2021

    The Basel Committee on Banking Supervision (BCBS) announced updates on its work in the areas of climate-related financial risks, cryptoassets, the assessment methodology for global systemically important banks (G-SIBs), and the final Pillar 3 disclosure standards for banks. This announcement follows discussions during the Committee's October and November 2021 meetings, which also had on the agenda the risks and vulnerabilities to the global banking system, in addition to the policy and supervisory initiatives. Later this month, BCBS plans to consult on a set of principles for the effective management and supervision of climate-related financial risks at the internationally active banks.

    The following are the other key BCBS announcements:

    • Post a review of the comments received on the initial consultation on the prudential treatment of cryptoasset exposures of banks, BCBS plans to further consult on this by mid-2022.
    • After discussing the feedback to its earlier proposal for a technical amendment to the process for reviewing the G-SIB assessment methodology, BCBS agreed to proceed with the proposed approach to replacing the existing three-year review cycle of the methodology, with a process of ongoing monitoring and review to ensure that it remains appropriate over time. In the near term, BCBS will review the implications of developments related to the European Banking Union for the G-SIB methodology, including a targeted review of the treatment of cross-border exposures on the G-SIB methodology.
    • BCBS approved the final standards for Pillar 3 disclosures for the revised market risk framework and for a set of voluntary disclosures for sovereign exposures of banks, with the final disclosure standards expected to be published in the coming weeks.
    • BCBS discussed the impact of the prolonged low interest-rate environment and the evolving outlook on the profitability, business models, and risk-taking behavior of banks. A deep-dive thematic analysis took stock of the cyclical and structural drivers behind interest rate dynamics and bank responses, the degree of heterogeneity across banking systems, and the main supervisory challenges and risks. BCBS will continue to assess these issues.
    • Members took stock of the operational resilience of banks, including the reliance on third- and fourth-party service providers. BCBS will continue to assess the supervisory and policy implications of third- and fourth-party and concentration risk, in coordination with other global standard-setting bodies and international forums.

     

    Related Link: Press Release

     

    Keywords: International, Banking, Securities, Climate Change Risk, Crypto Assets, G-SIB Assessment, ESG, G-SIB, Disclosure, Pillar 3, Market Risk, Basel, BCBS 

    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