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2023/24 Basel Committee work programme and strategic priorities

On 16 December 2022, the Basel Committee on Banking Supervision (BCBS) published its two-year work program outlining its strategic priorities for its policy, supervision, as well as implementation activities. Supported by the Group of Governors and Heads of Supervision, the program has been developed under the direction of the Committee Chair.

As key themes of the Committee's two-year work program, the following key objectives have been defined:

  • Emerging risks and horizon scanning: Identifying and analyzing banking system risks and vulnerabilities, such as the effect of geopolitical developments, stagflationary dynamics, scarring effects, and cross-border spillovers.
  • Digitalization of finance: Analyzing the bank and supervisory implications of the ongoing digitalization of finance, including the emergence of new entrants, the use of artificial intelligence, and governance arrangements. The Committee has also committed to the continuous assessment of bank-related developments in the crypto-asset market, including the role of banks as stable coin issuers, crypto-asset custodians, and broader channels of interconnections within the crypto-asset market.
  • Climate-related financial risks: Addressing climate-related financial risks in the global banking system through a holistic approach that integrates regulation, supervision, and disclosure. As part of the former, analytical work will be undertaken to determine whether there are any material gaps in the existing Basel framework, as well as monitorization of the implementation of its Principles for the effective management and supervision of climate-related financial risks published in 2022. Lastly, BCBS has vowed to coordinate with the International Sustainability Standards Board (ISSB) to complement ISSB's initiatives by developing a set of "Pillar 3" disclosure requirements for banks.
  • Monitoring and review of existing standards and guidance: Reviewing the existing standards and guidelines to ensure they are still relevant and appropriate. These will be limited to several targeted initiatives, such as updating the Core principles for effective banking supervision based on supervisory insights and structural changes since 2012. Additional guidance will also be developed regarding banks' interconnections with non-bank financial intermediaries, updating supervisory principles regarding banks' outsourcing practices, and reviewing shock scenarios in its banking book standard for interest rate risk.
  • Implementation and evaluation: Monitorization of the employment of Basel III and maintaining a Regulatory Consistency Assessment Program.

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RBI Regulatory Advisory

Raiffeisen Bank International AG | Member of RBI Group | Am Stadtpark 9, 1030 Vienna, Austria  | Tel: +43 1 71707 - 5923