BCBS announced that it is taking forward the evaluation of its Basel III post-crisis regulatory reforms. The evaluation will be performed by the Task Force on Evaluations, which is co-chaired by the ACPR Secretary General (Dominique Laboureix) and the Bank of Canada Managing Director of Financial Stability (Jing Yang). BCBS has called for nominations of experts by November 20, 2020, as it seeks to appoint up to three academic subject-matter experts from December 2020 until the completion of the evaluation in Spring 2022. The bulk of the work is expected to take place between Spring 2021 and Spring 2022.
The evaluation, which will incorporate lessons learned from the COVID-19 crisis, will notably assess the impact of Basel III reforms, both individually and collectively, on the resilience of banks and the global banking system. This will include evaluating if and how changes in bank behavior triggered by the reforms have, in turn, affected banking sector resilience. The evaluation will examine:
- Extent to which Basel III post-crisis regulatory reforms that have been implemented to date have achieved their objectives
- Interactions among the Basel III reforms and other post-crisis reforms
- Whether there are gaps in the Basel regulatory framework or any material unintended effects
The experts to be appointed would support the Task Force on Evaluations in the conduct of a range of empirical analyses. This involves providing input on methodological approaches and analytical issues, discussing the findings, and reviewing the draft evaluation report at designated milestones. BCBS will review candidates and select the academic advisors in November or December 2020.
Related Link: Press Release
Keywords: International, Banking, Basel III, Post-Crisis Reforms, COVID-19, Regulatory Reforms, Task Force on Evaluations, BCBS
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleECB Aims to Implement Integrated Reporting Framework by 2027
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.
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
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.
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.
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
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.
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
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.
The Bank for International Settlements (BIS) published bulletins on lending in decentralized finance (DeFi) system, on blockchain scalability and fragmentation of crypto, and on extractable value and market manipulation in crypto and decentralized finance.
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.