On 14 January 2019, the Basel Committee on Banking Supervision (Basel Committee) published its 2019-2020 work programme. The work programme is structured around four key areas:
- Policy development: The Basel Committee notes that there now remains only a targeted set of policy initiatives that require finalisation. This includes work related to the leverage ratio treatment of client cleared derivatives and measures to curtail window-dressing behaviour; efforts to enhance operational resilience; and potential policy measures related to crypto-assets. The Basel Committee will also consider whether to pursue work on: the ongoing efforts to reform benchmark rates considering the prudential and supervisory risks for banks; the Networking for Greening the Financial System; and the role of proportionality in the Basel framework.
- Evaluation and monitoring: The Basel Committee will be devoting increasingly more time to evaluating and monitoring the impact of its reforms, and assessing emerging risks. The Basel Committee will also continue to be involved with the evaluations coordinated by the Financial Stability Board. This includes the evaluations of: (i) the leverage ratio treatment of initial margin and its impact on client clearing; (ii) the impact of post-crisis reforms on financial intermediation; and (iii) the impact of reforms in ending “too-big-to-fail”.
- Supervision: The Basel Committee will continue to promote strong supervision and will renew its traditional focus on bank supervision. In 2019, the risks emerging from financial technology and the consequent impact on supervisory and regulatory strategies will be monitored and assessed closely. The Basel Committee also seeks to develop guidelines to enhance cooperation among prudential regulatory, anti-money laundering and investigative authorities.
- Implementation: The Basel Committee will continue its Regulatory Consistency Assessment Programme in 2019, with a focus on the implementation of the net stable funding ratio and large exposure standards. The Basel Committee expects to complete the assessments for most member jurisdictions by the end of 2020.