On 7 December 2023, the Basel Committee on Banking Supervision (Basel Committee) published a press release following the outcome of a meeting held virtually on 5 and 7 December 2023.
The headlines from the press release are that the Basel Committee:
- Agrees to consult on targeted revisions to the standard on cryptoasset. The Basel Committee took stock of its review of various elements of the prudential standard for banks’ exposures to cryptoassets published in December 2022. It agreed to consult on potential targeted revisions related to the criteria for stablecoins to receive a preferential “Group 1b” regulatory treatment. The Basel Committee will also consult on various technical amendments to help promote a consistent understanding of the standard.
- Agrees to consult on a recalibration of the interest rate risk in the banking book (IRRBB) standard. A consultation paper will be published this month. The consultation will propose updates to the interest rate shocks specified in the IRRBB standard to take account of interest rate movements since the standard was first published in April 2016.
- Decides to develop potential measures to address window-dressing behaviour by some banks in the context of the framework for global systemically important banks. The Basel Committee will consult in 2024 on potential policy options aimed at reducing window-dressing behaviour. To help inform this work, the Committee will collect higher frequency data items.
- Discusses risk management considerations associated with the transition to a low carbon economy and related physical risks.