On 14 December 2022, the Basel Committee on Banking Supervision published a report on the evaluation of the impact and efficacy of the Basel III reforms. This report provides the Committee’s first holistic evaluation of the impact and efficacy of the Basel III reforms and how they have affected bank resilience and systemic risk as … Continue Reading
On 24 November 2022, the Bank for International Settlements (BIS) published a newsletter on bank exposures to non-bank financial intermediaries. The newsletter highlights the following: The non-bank financial intermediary (NBFI) sector continues to grow and has the potential to cause financial stability concerns, though its size and the associated risk vary amongst member jurisdictions. Recent … Continue Reading
On 21 November 2022, the Financial Stability Board (FSB) published the 2022 list of globally systemically important banks (G-SIBs). The list is based on end-2021 data and an assessment methodology designed by the Basel Committee on Banking Supervision, which was revised in 2018. The revised methodology is applied for the first time this year. The … Continue Reading
On 13 September 2022, the Basel Committee on Banking Supervision (BCBS) published a press release following a meeting of the Group of Central Bank Governors and Heads of Supervision (GHOS) reaffirming their expectation to implement Basel III in full and work as fast as possible; provide direction on future work on climate-related financial risks and … Continue Reading
On 8 February 2022, the Basel Committee on Banking Supervision (Basel Committee) published a speech by its Chair, Pablo Hernández de Cos, entitled ‘Implementing Basel III’. Key points in the speech include: An open global financial system requires a set of global minimum and consistent prudential standards. A failure to achieve this could result in … Continue Reading
On 10 December 2021, the Council of the Islamic Financial Services Board (IFSB) adopted two new standards: IFSB-23: Revised Capital Adequacy Standard for Institutions offering Islamic Financial Services (IIFS). IFSB-23 was developed to align the IFSB’s guidance on capital adequacy for the banking sector with the latest updates to global capital standards, particularly those issued … Continue Reading
On 16 December 2021, the Financial Stability Board (FSB) published the Global Monitoring Report on Non-Bank Financial Intermediation 2021. The report presents the results of the FSB’s annual monitoring exercise to assess global trends and risks in non-bank financial intermediation (NBFI). In contrast to the trend over the past decade, the NBFI sector grew less … Continue Reading
On 13 December 2021, the Financial Stability Board (FSB) published a paper on the execution of bail-in. Bail-in is at the core of resolution strategies for global systemically important banks (G-SIBs). Set out in the Key Attributes of Effective Resolution Regimes for Financial Institutions, it is an important tool enabling an orderly resolution that minimises … Continue Reading
On 7 December 2021, the Financial Stability Board (FSB) published its 2021 Resolution Report. The Resolution Report takes stock of the progress made in implementing the FSB resolution policies and enhancing resolvability across the banking, financial market infrastructure, and insurance sectors. It also sets out the FSB’s priorities in the resolution area going forward. Looking … Continue Reading
On 23 November 2021, the Financial Stability Board (FSB) published the 2021 list of global systematically important banks (G-SIBs) using end-2020 data and an assessment methodology designed by the Basel Committee on Banking Supervision (Basel Committee). FSB member authorities apply the following requirements to G-SIBs: Higher capital buffer. The G-SIBs have been allocated to buckets … Continue Reading
On 16 November 2021, the Basel Committee on Banking Supervision (BCBS) issued a public consultative document titled Principles for the effective management and supervision of climate-related financial risks. The BCBS reports that a review of the existing Basel Framework has concluded that while the ‘Core Principles for Effective Banking Supervision’ (Core Principles) and the ‘Supervisory … Continue Reading
On 1 November 2021, the Financial Stability Board (FSB) published its progress report, ‘Enhancing the Resilience of Non-Bank Financial Intermediation’, which was delivered to G20 Leaders ahead of their Summit last weekend. This report details the progress over the past year and the planned work set out by the FSB alongside, standard-setting bodies and other … Continue Reading
On 18 October 2021, the Financial Stability Board (FSB) published a speech by its chair, Randal K Quarles, titled ‘Financial Stability and Coordination in Times of Crisis’. In his speech, Mr Quarles focuses on four areas: Reacting and responding to crisis: Leveraging cooperation to ensure stability and contain spill- During the decade between the global … Continue Reading
On 14 October 2021, the Basel Committee on Banking Supervision (BCBS) issued a progress report on the adoption of the Basel regulatory framework. Basel III was developed by BCBS as an internationally agreed set of measures in response to the global financial crisis of 2007-2009. The measures within the regulatory framework aim to strengthen the … Continue Reading
On 13 October 2021, the Financial Stability Board (FSB) published a press release announcing the publication of its first consolidated progress report covering the progress made during the first year of the G20’s Roadmap for Enhancing Cross-border Payments. The report highlights that most of the milestones set by the Roadmap for 2021 have been completed … Continue Reading
On 30 July 2021, the Basel Committee on Banking Supervision (Basel Committee) and the World Bank (WB) published a report on an earlier joint global survey that focussed on proportionality in bank regulation and supervision. The survey involved 90 authorities, with a broad distribution across geographical regions and income groups. The concept of proportionality is … Continue Reading
On 7 June 2021, the Basel Committee on Banking Supervision (Basel Committee) issued a press release following its meeting on 4 June 2021. During this meeting the Basel Committee took stock of COVID-19 risks to the banking system and discussed policy and supervisory initiatives. In terms of crypto-assets the press release notes that the Basel … Continue Reading
On 31 May 2021, the Financial Stability Board (FSB) issued a consultative document regarding targets for addressing the four challenges of cross-border payments – cost, speed, transparency and access. The FSB explains that these targets are a foundational step in the G20 Roadmap for Enhancing Cross-border Payments. The consultative document: (i) describes the principles, and … Continue Reading
On 16 April 2021, the Basel Committee on Banking Supervision (Basel Committee) published its work programme for 2021-22. The work programme focuses on three key themes: COVID-19 resilience and recovery. This includes ongoing monitoring and assessment of risks and vulnerabilities to the global banking system. Horizon scanning and mitigation of medium-term risks and trends. This … Continue Reading
On 26 November 2020, the Basel Committee on Banking Supervision published a technical amendment ‘Capital treatment of securitisations of non-performing loans’. The technical amendment closes a gap in the Basel framework by setting out prudent and risk sensitive capital requirements for non-performing loan securitisations. The Basel Committee has agreed to add the following elements to … Continue Reading
On 18 November 2020, the Financial Stability Board (FSB) published its 2020 Resolution Report. In relation to banks the report notes that global systemically important banks (G-SIBs) are estimated to already meet the final 2022 minimum external total loss absorbing capacity (TLAC) requirement. While disclosure of external TLAC levels by G-SIBs has improved over the … Continue Reading
On 11 November 2020, the Financial Stability Board (FSB) issued a press release confirming the 2020 list of global systemically important banks (G-SIBs). The list of G-SIBs is based on end-2019 data and the updated assessment methodology published by the Basel Committee on Banking Supervision in July 2013. The overall number of G-SIBs remains 30. … Continue Reading
On 25 September 2020, the Basel Committee on Banking Supervision (Basel Committee) issued a press statement following its meeting on 14, 18 and 25 September 2020 to take stock of COVID-19 risks to the global banking system and related vulnerabilities. Key points in the press statement include: The Basel Committee reiterates its previous guidance that … Continue Reading
On 9 July 2020, the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (Basel Committee) issued a report on supervisory issues associated with benchmark transition. The report includes insights on remaining challenges to LIBOR transition based on surveys undertaken by the FSB, the Basel Committee and the International Association of Insurance Supervisors. … Continue Reading
