The Basel Committee's work programme
Updated 25 April 2017
- Finalise existing policy initiatives and initiate targeted policy development
- Monitor emerging risks and assess the impact of the Committee's post-crisis reforms
- Promote strong supervision
- Ensure full, timely and consistent implementation of the Committee's standards
About the Basel Committee's work programme
The Basel Committee maintains a two-year work programme that outlines the strategic priorities for the Committee's policy, supervision and implementation activities. The work programme is endorsed by the Group of Governors and Heads of Supervision and is developed under the direction of the Committee Chairman.
2017-18 work programme details
The Committee's policy-related initiatives can be grouped into two broad categories.
- Finalising existing policy initiatives. This includes:
- Most notably, the Basel III reforms, where the Committee continues to make progress towards finalising these reforms.
- The Committee's review of the regulatory treatment of sovereign exposures.
- The regulatory treatment of expected loss provisioning.
- The identification and measurement of "step-in" risk provided by banks to non-bank entities.
- Targeted adjustments and simplifications to the revised market risk and securitisation frameworks.
- Assessing whether additional focused policy initiatives are warranted, in the light of emerging risks and the Committee's assessment of the impact of its post-crisis reforms.
Monitoring risks and assessing the impact of post-crisis reforms
An important priority for the Committee is to continue monitoring emerging cyclical and structural risks, changes in banks' business models and innovative transactions or regulatory arbitrage techniques which may go against the objective or spirit of the Basel framework. The Committee will take a systematic micro- and macroprudential approach to monitoring these developments, which will help inform the Committee in considering whether any policy and/or supervisory responses are warranted.
The Committee will also continue its work to assess the impact of its post-crisis reforms. This will include assessing the effectiveness of the Committee's post-crisis reforms in reducing excessive variability of banks' risk-weighted assets, in addition to a more general assessment of the extent to which the Committee's post-crisis reforms have achieved their intended objectives.
Promoting strong supervision
The Committee will place a greater focus on supervision. This will include further improving supervisory tools and techniques by developing case studies and identifying best practices, where appropriate, in a number of key areas.
For example, this will include a deeper assessment of the varying supervisory actions taken under Pillar 2 in different jurisdictions, stress testing practices, assessing the supervisory impact of the growth of financial technology and sharing best practices on how supervisors are to assess expected credit loss provisioning practices for regulatory capital purposes.
Ensuring implementation of the Committee's standards
Full, timely and consistent adoption and implementation of Basel standards is critical to improving the resilience of the global banking system and promoting confidence in prudential ratios. The Basel Committee's Regulatory Consistency Assessment Programme (RCAP) will therefore remain a high priority.
During 2017, the Committee will complete the seven remaining RCAP assessments related to the Liquidity Coverage Ratio. In addition, the Committee will thereafter start to review the implementation of other standards, starting with the Net Stable Funding Ratio and Large Exposures framework, with the first reports discussed and published in 2018. The Committee will also review banks' implementation of the standard on interest rate risk in the banking book.
Further, through its Basel Consultative Group, the Committee will discuss implementation challenges of the regulatory framework with a broad range of non-BCBS member jurisdictions from emerging market economies.