Featured Product

    BCBS to Consult on Supervisory Practices for Climate Risks by Year-End

    September 20, 2021

    The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards and establish an International Sustainability Standards Board or ISSB. BCBS also published a newsletter calling on banks to improve their resilience to cyber threats. Following the publication of a series of analytical reports on climate-related financial risks in April 2021, BCBS is assessing the extent to which the Basel framework adequately mitigates such risks. As part of this work, it is developing a set of related supervisory practices, which it plans to consult on later this year. It will also consider whether any additional disclosure, supervisory, and/or regulatory measures are needed.

    In the newsletter on cyber security, BCBS notes that it is important for all banking authorities to encourage the institutions they oversee to adopt tools, effective practices, and frameworks, including provisions for testing their efficacy, for cyber risk management that are aligned with widely accepted industry standards. Adopting such approaches will allow banks to better identify, assess, manage, and mitigate their exposures to cyber risks, including those arising from third-party service providers. This will foster greater resilience to cyber threats and incidents in furtherance of the Principles for the Sound Management of Operational Risk (PSMOR) and the Principles for Operational Resilience (POR), which the BCBS published in March 2021. BCBS, in general, does not endorse any particular tool, effective practice, or framework, but welcomes the adoption by banks of those in use globally that align with widely accepted industry standards. The commonality of content and form across these standards demonstrates the global consensus that now exists on key cyber security principles. Available tools, effective practices, and frameworks aligned with industry standards include the National Institute of Standards and Technology (NIST) Cybersecurity Framework, the International Organization for Standardization (ISO) 2700x, and the Center for Internet Security Critical Security Controls. In addition, supervisors may wish to encourage their banks to use resources such as the FSB's Cyber Incident Response and Recovery toolkit and its cyber lexicon. Many of these tools, effective practices, and frameworks are publicly and freely available to banks.

     

    Related Links

    Keywords: International, Banking, Newsletter, Fintech, Climate Change Risk, ESG, ISSB, IFRS, Operational Resilience, Operational Risk, Cyber Risk, Regtech, Reporting, Disclosures Basel, BCBS 

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582