The Basel Committee on Banking Supervision (Basel Committee) has published details of its work programme for 2017 and 2018. The work programme is structured around four themes:
- finalise existing policy initiatives and initiate targeted policy development. The Basel Committee will work to finalise existing policy initiatives. This includes: (i) the Basel III reforms; (ii) the Basel Committee’s review of the regulatory treatment of sovereign exposures; (iii) the regulatory treatment of expected loss provisioning; (iv) the identification and measurement of “step-in” provided by banks to non-bank entities; and (v) targeted adjustments and simplifications to the revised market risk and securitisation frameworks. The Basel Committee will also assess whether additional focused policy initiatives are warranted, in the light of emerging risk and its assessment of the impact of its post-crisis reforms;
- monitor emerging risks and assess the impact of the Basel Committee’s post-crisis reforms. The Basel Committee will continue monitoring emerging cyclical and structural risks, changes in bank’s business models and innovative transactions or regulatory arbitrage techniques which may go against the objective or spirit of the Basel framework. The Basel Committee will also take a systematic micro- and macro-prudential approach to monitoring these developments, which will help inform the Basel Committee in considering whether any policy and/or supervisory responses are warranted;
- promote strong supervision. The Basel Committee will place greater focus on supervision. This will include further improving supervisory tools and techniques by developing case studies and identifying best practices, where appropriate, in a number of key areas. For example, this will include a deeper assessment of the supervisory action taken under Pillar 2 in different jurisdictions, stress testing practices, assessing the supervisory impact of the growth of financial technology and sharing best practices on how supervisors are to assess expected credit loss provisioning practices for regulatory capital purposes; and
- ensure full, timely and consistent implementation of the Basel Committee’s standards. The Basel Committee’s Regulatory Consistency Assessment Programme (RCAP) will remain a high priority. During 2017, the Basel Committee will complete the seven remaining RCAP assessments related to the liquidity coverage ratio. In addition, the Basel Committee will start to review the implementation of other standards, starting with the net stable funding ratio and large exposures framework, with the first reports discussed and published in 2018. The Basel Committee will also review banks’ implementation of the standard on interest rate risk in the banking book. Further, through its Basel Consultative Group, the Basel Committee will discuss implementation challenges of the regulatory framework with a broad range of non-Basel Committee member jurisdictions from emerging market economies.
View BCBS work programme for 2017 and 2018, 25 April 2017