16 Apr BCBS – Published work program and strategic priorities for 2021-22
April 16, 2021 – BCBS work program and strategic priorities for 2021-22 reflects outcome of a recent strategic review by the committee to ensure it continues to meet its aims. In pursuing the program BCBS will be guided by a steadfast commitment to global financial stability, collaboration, and cooperation with a wide range of international stakeholders.
Continues to be a core part of work, monitoring impact on the global banking system, impact of implementation, and unwinding of domestic measures to ensure consistency. Conducting an evaluation of lessons learned from the pandemic, with a report due in summer 2021.
Will analyze the implications for banks and supervisors or medium-term themes and trends. Impacts of ongoing digitalization and disintermediation of finance on the banking system. Assessment, measurement, and mitigation of climate-related financial risks, spanning regulatory, supervisory, and disclosure-related elements for the global banking system. Consider the impact of a “low-for-long” interest rate environment for bank business models. Will finalize outstanding initiatives including the prudential treatment of banks’ crypto-assets exposures, banks’ disclosure requirements for market risk, and sovereign exposures.
Key areas of focus include the use of AI and machine learning in banking and supervision, along with broader issues related to the use of technology in supervision (suptech). Data, technology governance by banks, insights, and supervisory approaches on operations resilience, focus on cybersecurity, leveraged lending, and collateralized loan obligations. To continue cooperation with global bodies on issues including cross-border payments, non-bank financial intermediation, benchmark rate transition, and FX settlement risk. Will pursue further initiatives to promote the role of proportionality in bank regulation.
Basel III Implementation
The oversight body has marked a clear end to the Basel III policy development agenda. Work will now focus on monitoring implementation, completing an evaluation of the Basel III standards, including pandemic lessons learned, and evidence from the past decade.
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