BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020. The overarching theme for the Conference this year was "the future of supervision in a changing world." The discussions covered the digitalization of finance and the evolution of banking models, operational resilience, climate-related financial risks, and remote working arrangements. Participants also exchanged views on the challenges for central banks and bank supervisors in advanced and emerging market economies during the Covid-19 pandemic as well as adapting to the changing operating environment for central banks and supervisors.
The event included several panel discussions and keynote speeches by Pablo Hernández de Cos, the BCBS Chair, and Prithwiraj Choudhury, the Associate Professor at Harvard Business School. The BCBS Chair discussed the lessons learned from the ongoing crisis so far and the "future and changes that we want to see in banking supervision." He emphasized that the Basel III capital and liquidity buffers could be a powerful lever for banks to absorb shocks and maintain lending. Since the start of this crisis, BCBS has publicly reiterated its position that a measured drawdown of buffers to meet these objectives is appropriate and that supervisors will provide sufficient time for banks to restore these buffers. Using these resources to absorb shocks and support households and businesses should take priority at present over discretionary distributions. Professor Prithwiraj Choudhury discussed the implications of the "working from anywhere" geographic flexibility, with the participants discussing what this means for supervision. These changes, whether temporary or permanent, offer some clues about the future landscape.
Approximately 450 senior banking supervisors and central bankers representing close to 100 countries took part in the conference. Delegates discussed a wide range of issues related to the future of banking supervision in a changing world. This successful event marks the first time that the Basel Committee has worked with a host country to offer a completely virtual conference. The conference promotes the discussion of key supervisory issues and fosters the continuing cooperation in the oversight of international banking. With its wide membership of senior supervisors and policymakers, the conference presents a unique opportunity for a broad-based discussion on issues that are timely and relevant to supervisors in both advanced and emerging market economies.
Keywords: International, Americas, Canada, Banking, COVID-19, Basel, Operational Resilience, Climate Change Risk, ICBS, International Conference of Banking Supervisors, OSFI, BCBS
Previous ArticleRegulators Fine Goldman Sachs for Risk Management Failures
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.
The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.
The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.
The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).
The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.