- Group of Central Bank Governors and Heads of Supervision (GHOS) unanimously reaffirm their expectation to implement Basel III in full and consistently and as soon as possible.
- The Basel Committee will publish a voluntary disclosure framework on climate-related financial risks for jurisdictions to consider.
- GHOS agreed to prioritize further analysis on the financial risk implications of extreme weather events.
After a recent meeting, the Group of Central Bank Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision (BCBS), made the following statement:
Basel III implementation
The GHOS took stock of the implementation status of the outstanding Basel III reforms, which were finalized in 2017. Members have continued to make good progress with implementation. About 70% of member jurisdictions have now implemented, or will shortly implement, the standards.
GHOS members unanimously reaffirmed their expectation of implementing all aspects of the Basel III framework in full, consistently and as soon as possible. The series of shocks to financial markets over the past few years have highlighted the importance of having a prudent global regulatory framework in place. The GHOS tasked the Committee with continuing to monitor and assess the full and consistent implementation of Basel III.
The GHOS also took note of the Committee’s ongoing analytical and supervisory work to assess whether specific features of the Basel Framework performed as intended during the 2023 banking turmoil, such as liquidity risk and interest rate risk in the banking book.
Climate-related financial risks
GHOS members discussed the Committee’s proposed Pillar 3 disclosure framework for climate-related financial risks. The Basel Committee will publish a voluntary disclosure framework for jurisdictions to consider.
The GHOS also discussed the Committee’s broader work on climate-related financial risks. The GHOS tasked the Committee with prioritizing its work to analyze the impact of extreme weather events on financial risks.