On 23 March 2023, the Basel Committee on Banking Supervision (Basel Committee) announced a range of policy and supervisory initiatives, following a meeting on 14 March and 22-23 March to take stock of recent market developments and risks to the global banking system.
Following the meeting, the Basel Committee announced the following:
- The Basel Committee will continue to closely monitor bank and market developments and assess the financial stability risks of higher interest rates to the global banking system. In addition, the Basel Committee has agreed to take stock of the regulatory and supervisory implications stemming from recent events, with a view to learn lessons.
- The Basel Committee will issue a consultation paper on the proposed Pillar 3 disclosure framework for climate-related financial risks. The purpose of the framework is to provide additional bank disclosures about the prudential risks.
- The Basel Committee is reviewing its Core principles for effective banking supervision (Basel Core Principles) drawing on supervisory insights and structural changes since the previous update in 2012. The Basel Committee agreed to consult on revisions to the Basel Core Principles by mid-2023.
- The Basel Committee will also continue to monitor banks’ cryptoasset activities and exposures, including their role as potential issuers of stablecoins and tokenised deposits, custodians of cryptoassets and interconnections with other nodes of the cryptoasset ecosystem.
- As part of its Regulatory Consistency Assessment Programme, the Basel Committee reviewed and approved the assessment reports of South Africa’s implementation of the net stable funding ratio and large exposures framework. The reports will be published in April.
- The Basel Committee also announced that the next International Conference of Banking Supervisors (ICBS) will be held in Basel on 24-25 April 2024, to coincide with the Committee’s 50th anniversary. Additional information on the ICBS will be provided in due course.