The Basel Committee on Banking Supervision (BCBS) has published its work programme for 2015 and 2016. The work programme is structured around four key themes:
- policy development;
- ensuring an adequate balance between simplicity, comparability and risk sensitivity across the regulatory framework;
- monitoring and assessing the implementation of the Basel framework; and
- improving the effectiveness of supervision.
In relation to policy development the BCBS will continue to pursue its post-crisis reform agenda, with a focus on restoring confidence in capital ratios. This includes a revision to existing methods of measuring risk weighted assets. In addition to existing policy initiatives, there are three policy-related issues that the BCBS is undertaking:
- assessing the interaction, coherence and overall calibration of the reform process. In particular, as part of its policy development work the BCBS is committed to finalising the calibration of the leverage ratio, revising the standardised approaches and implementing a capital floor. As part of this work, the BCBS will also consider how the interaction of the various metrics should influence the calibration of these policy items;
- reviewing the regulatory treatment of sovereign risk. The BCBS has initiated a review of the existing regulatory treatment of sovereign risk and will consider potential policy options; and
- assessing the role of stress testing in the regulatory framework, in light of national developments. The BCBS plans to further investigate current approaches to stress testing across jurisdictions and discuss the role of stress testing in the Basel framework, particularly how stress testing relates to the existing Pillar 1 regulatory framework.
View The Basel Committee’s work programme for 2015 and 2016, 23 January 2015