- The Basel Committee on Banking Supervision (BCBS) progresses work to strengthen supervisory effectiveness based on the lessons learned from the 2023 banking turmoil.
- Agrees to analyze global practices and recent developments related to information and communication technology risk management.
- Agrees to further investigate banks’ interconnections with non-bank financial intermediation, with a particular focus on synthetic risk transfers.
2023 banking turmoil
BCBS took stock of its work to develop a suite of practical tools to support supervisors in their day-to-day work as part of its efforts to strengthen supervisory effectiveness in light of the lessons learned from the 2023 banking turmoil. This work covers the supervision of liquidity risk and interest rate risk in the banking book, the assessment of the sustainability of banks’ business models, and the importance of effective supervisory judgment. BCBS will publish an update on the outcome of this work by mid-2025.
Information and communication technology
As part of its broader work on the supervision of operational resilience, and in light of the evolving technology landscape and rising information technology incidents globally, BCBS agreed to analyze recent developments and global practices related to banks’ information and communication technology risk management. BCBS plans to publish in 2026 a range of practices report summarizing its findings.
Non-bank financial intermediation (NBFI)
As part of its ongoing work to assess banks’ interconnections with NBFIs, BCBS agreed to conduct over the coming year a deep-dive investigation on synthetic risk transfers (SRTs). SRTs can be used to transfer banks’ credit risk to NBFI entities, helping banks manage risk and/or reduce regulatory requirements. While SRTs are not a new financial product, their use has grown and transactions structures have evolved in recent years. The investigation will seek to better assess the benefits and risks posed by SRTs.
Implementation of Basel III
As part of its Regulatory Consistency Assessment Program, BCBS reviewed and approved the assessment reports on the implementation of the Net Stable Funding Ratio and large exposures framework by Türkiye. The reports will be published next month.