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 banks should make use of the Basel III capital and liquidity buffers during the pandemic to absorb financial shocks.
- Supervisors will allow banks sufficient time to restore buffers, taking account of economic and market conditions as well as the circumstances of individual banks.
- The Basel Committee will continue to monitor the risks to the global banking system from COVID-19 and will pursue additional measures if needed.
- The Basel Committee approved the results of the annual assessment exercise for global systemically important banks (G-SIBs). The results will be submitted to the Financial Stability Board before the Basel Committee publishes the 2020 list of G-SIBs.
- The Basel Committee approved an updated work plan to evaluate its post-crisis reforms. This will include conducting analyses to evaluate: (i) the extent to which its post-crisis reforms have achieved their objectives; (ii) the interactions among the Basel III reforms and other post-crisis reforms; and (iii) whether there are gaps in the regulatory framework or significant unintended effects.