Basel Committee publishes work programme and strategic priorities for 2021-22 – op res on the agenda
- Published: Tuesday, 20 April 2021 08:27
The Basel Committee on Banking Supervision has set out its work programme for 2021-22, this includes a focus on pandemic response and recovery and operational resilience regulation.
The work programme sets out the strategic priorities for the Committee over the coming year and reflects the outcome of a recent strategic review by the Committee to ensure that it continues to effectively promote global financial stability and strengthen the regulation, supervision and risk management practices of banks worldwide.
The work programme, which was recently endorsed by the Group of Governors and Heads of Supervision (GHOS), the oversight body of the Committee, focuses on three key themes:
- COVID-19 resilience and recovery: including the ongoing monitoring and assessment of risks and vulnerabilities to the global banking system. Where deemed relevant, the Committee stands ready to deploy additional policy and/or supervisory measures to mitigate these risks.
- Horizon scanning and mitigation of medium-term risks and trends: the Committee will ‘pursue a forward-looking approach to identifying, assessing and mitigating medium-term risks and structural trends to the banking system’. This will include work related to the ongoing digitalisation of finance, climate-related financial risks, and the impact on banks' business models resulting from a ‘low-for-long’ interest rate environment.
- Strengthening supervisory coordination and practices: The Committee will pursue a range of initiatives aimed at strengthening supervisory coordination and practices, with a focus on the role of artificial intelligence / machine learning in banking and supervision, data and technology governance by banks, operational resilience, and the role of proportionality in bank regulation and supervision.
Operational resilience work will cover ‘insights and supervisory approaches on operational resilience, with a particular focus on cyber security’.