http://www.bis.org/list/bcbs/tid_50/index.rss Publications and updates by the Basel Committee on Banking Supervision (BCBS), including on topics related to the Basel II Framework and its implementation. Risk management en http://www.bis.org/publ/joint35.htm The final report identifies and assesses differences and gaps in regulatory approaches to point of sale (POS) disclosure for investment and savings products across the insurance, banking and securities sectors. It considers whether regulatory approaches to POS disclosure need to be further aligned across sectors and sets out eight recommendations, directed mainly to policymakers and supervisors, to assist them in considering, developing or modifying their POS disclosure regulations. Changes made to the consultation document are explained in a feedback statement annexed to the final report. Point of Sale disclosure in the insurance, banking and securities sectors - final report 2014-04-30T09:00:00Z The final report identifies and assesses differences and gaps in regulatory approaches to point of sale (POS) disclosure for investment and savings products across the insurance, banking and securities sectors. It considers whether regulatory approaches to POS disclosure need to be further aligned across sectors and sets out eight recommendations, directed mainly to policymakers and supervisors, to assist them in considering, developing or modifying their POS disclosure regulations. An earlier version of this report was issued for consultation in August 2013. The Joint Forum wishes to thank those who provided feedback and comments as these were instrumental in revising and finalising the report and its recommendations. The changes made to the consultation document are explained in a feedback statement annexed to the final report. Point of Sale disclosure in the insurance, banking and securities sectors - final report 2014-04-30T09:00:00Z BIS consumer protection collective investment cross-sectoral collective investment scheme PDF version http://www.bis.org/publ/joint35.pdf April 2014 Bank for International Settlements: BCBS Publications 35 http://www.bis.org/publ/bcbs282.htm Abstract of "Capital requirements for bank exposures to central counterparties - final standard", April 2014. The Basel Committee completed its work on the capital treatment of bank exposures to central counterparties, following a collaborative effort between the BCBS, the CPSS, and IOSCO to improve upon the interim capital requirements that were published in July 2012. The final standard will take effect on 1 January 2017. The interim requirements will continue to apply until that time. The final standard differs from the interim requirements by: ... Capital requirements for bank exposures to central counterparties - final standard 2014-04-10T08:00:00Z The Basel Committee completed its work on the capital treatment of bank exposures to central counterparties, following a collaborative effort between the BCBS, the Committee on Payment and Settlement Systems (CPSS), and the International Organization of Securities Commissions (IOSCO) to improve upon the interim capital requirements that were published in July 2012. The final standard will take effect on 1 January 2017. The interim requirements will continue to apply until that time. The final standard differs from the interim requirements by: including a single approach for calculating capital requirements for a bank's exposure that arises from its contributions to the mutualised default fund of a qualifying CCP (QCCP); employing the standardised approach for counterparty credit risk (as opposed to the Current Exposure Method) to measure the hypothetical capital requirement of a CCP; including an explicit cap on the capital charges applicable to a bank's exposures to a QCCP; specifying how to treat multi-level client structures whereby an institution clears its trades through intermediaries linked to a CCP; and incorporating responses to frequently asked questions posed to the Basel Committee in the course of its work on the final standard. Capital requirements for bank exposures to central counterparties - final standard 2014-04-10T08:00:00Z BIS capital CCPs PDF version http://www.bis.org/publ/bcbs282.pdf April 2014 Bank for International Settlements: BCBS Publications 282 http://www.bis.org/publ/bcbs279.htm Abstract of "The standardised approach for measuring counterparty credit risk exposures - final document", March 2014 The Basel Committee's final standard on "The standardised approach for measuring counterparty credit risk exposures" includes a comprehensive, non-modelled approach for measuring counterparty credit risk associated with OTC derivatives, exchange-traded derivatives, and long settlement transactions. The new standardised approach (SA-CCR) replaces both the Current Exposure Method (CEM) and the Standardised Method (SM) in the capital adequacy framework. In addition, the IMM shortcut method will be eliminated from the framework once the SA-CCR takes effect, which is scheduled for 1 January 2017. The standardised approach for measuring counterparty credit risk exposures 2014-03-31T09:00:00Z The Basel Committee's final standard on "The standardised approach for measuring counterparty credit risk exposures" includes a comprehensive, non-modelled approach for measuring counterparty credit risk associated with OTC derivatives, exchange-traded derivatives, and long settlement transactions. The new standardised approach (SA-CCR) replaces both the Current Exposure Method (CEM) and the Standardised Method (SM) in the capital adequacy framework. In addition, the IMM shortcut method will be eliminated from the framework once the SA-CCR takes effect, which is scheduled for 1 January 2017. The standardised approach for measuring counterparty credit risk exposures 2014-03-31T09:00:00Z BIS OTC derivatives counterparty credit risk exposure at default standardised method current exposure method CEM potential future exposure EAD IMM shortcut method SA-CCR exchange-traded derivatives SM long settlement transations NIMM non-internal model method replacement cost PDF version http://www.bis.org/publ/bcbs279.pdf March 2014 Bank for International Settlements: BCBS Publications 279 http://www.bis.org/publ/bcbs277.htm Abstract of "A Sound Capital Planning Process: Fundamental Elements", January 2014 The Basel Committee has issued these sound practices to foster overall improvement in banks' capital planning practices. Indeed, an important lesson from the financial crisis concerned the need for banks to improve and strengthen their capital planning. Some of the observed ... A sound capital planning process: fundamental elements 2014-01-23T10:00:00Z The Basel Committee has issued these sound practices to foster overall improvement in banks' capital planning practices. Indeed, an important lesson from the financial crisis concerned the need for banks to improve and strengthen their capital planning. Some of the observed weaknesses reflected processes that were not sufficiently comprehensive, appropriately forward-looking or adequately formalised. As a consequence, some banks underestimated the risks inherent in their business strategies and, in turn, misjudged their capital needs. A sound capital planning process: fundamental elements 2014-01-23T10:00:00Z BIS Stress testing Pillar 2 governance Capital policy ICCAP Risk capture Pillar II Internal control PDF version http://www.bis.org/publ/bcbs277.pdf January 2014 Bank for International Settlements: BCBS Publications 277 http://www.bis.org/publ/bcbs275.htm Abstract of "Sound management of risks related to money laundering and financing of terrorism", January 2014 The Basel Committee on Banking Supervision has issued a set of guidelines to describe how banks should include risks related to money laundering and financing of terrorism within their overall risk management framework Sound management of risks related to money laundering and financing of terrorism 2014-01-15T15:00:00Z The Basel Committee on Banking Supervision has issued a set of guidelines to describe how banks should include risks related to money laundering and financing of terrorism within their overall risk management framework. Prudent management of these risks, together with effective supervisory oversight, is critical in protecting the safety and soundness of banks as well as the integrity of the financial system. Failure to manage these risks can expose banks to serious reputational, operational, compliance and other risks. Sound management of risks related to money laundering and financing of terrorism 2014-01-15T15:00:00Z BIS FATF AML/CFT CDD criminal activities PDF version http://www.bis.org/publ/bcbs275.pdf January 2014 Bank for International Settlements: BCBS Publications 275 http://www.bis.org/publ/bcbs269.htm Abstract of "Revisions to the securitisation framework - consultative document", December 2013. Revisions to the securitisation framework - consultative document 2013-12-19T08:30:00Z The Basel Committee on Banking Supervision has today issued a second consultative paper on revisions to the Basel securitisation framework. The paper, which is part of the Committee's broader agenda to reform regulatory standards for banks in response to lessons learned from the global financial crisis, comprises a detailed set of proposals, including draft standards text, for a comprehensive revision of the treatment of securitisation. Revisions to the securitisation framework - consultative document 2013-12-19T08:30:00Z BIS Internal Ratings-Based Approach securitisation Resecuritisation standardised approach Supervisory formula External Ratings-Based Approach Basel capital requirements PDF version http://www.bis.org/publ/bcbs269.pdf December 2013 Bank for International Settlements: BCBS Publications 269 http://www.bis.org/publ/bcbs268.htm Abstract of "Progress in adopting the principles for effective risk data aggregation and risk reporting", December 2013. Progress in adopting the principles for effective risk data aggregation and risk reporting 2013-12-18T10:00:00Z The progress report provides a snapshot of G-SIBs' overall preparedness to comply with the Principles, as well as the related challenges they face. G-SIBs are increasingly aware of the importance of this topic and have taken steps towards fully implementing the Principles. Nevertheless, many banks are facing difficulties in establishing strong data aggregation governance, architecture and processes, which collectively represent the initial stage of implementation. Instead, they resort to extensive manual workarounds. Notably, of the 30 banks that were identified as G-SIBs during 2011 and 2012, 10 reported that they will not be able to fully comply with the Principles by the 2016 deadline. The main reason reported is large, ongoing, multi-year IT and data-related projects. Progress in adopting the principles for effective risk data aggregation and risk reporting 2013-12-18T10:00:00Z BIS bank resolution corporate governance G-SIBs Self-assessment survey IT governance and infrastructure PDF version http://www.bis.org/publ/bcbs268.pdf December 2013 Bank for International Settlements: BCBS Publications 268 http://www.bis.org/publ/bcbs265.htm Abstract of "Fundamental review of the trading book - second consultative document", October 2013 The Basel Committee on Banking Supervision has today issued a second consultative paper on the fundamental review of capital requirements for the trading book. The paper comprises a detailed set of proposals for a comprehensive revision of the market risk framework. This initiative forms part of the Committee's broader agenda to reform regulatory standards for banks in response to the financial crisis. Fundamental review of the trading book - second consultative document 2013-10-31T10:00:00Z Basel Committee's Fundamental review of the trading book - second consultative document The Basel Committee on Banking Supervision has today issued a second consultative paper on the fundamental review of capital requirements for the trading book. The paper comprises a detailed set of proposals for a comprehensive revision of the market risk framework. This initiative forms part of the Committee's broader agenda to reform regulatory standards for banks in response to the financial crisis. Fundamental review of the trading book - second consultative document 2013-10-31T10:00:00Z BIS market risk Trading Book Basel III Basel 2.5 Basel II.5 PDF version http://www.bis.org/publ/bcbs265.pdf October 2013 Bank for International Settlements: BCBS Publications 265 http://www.bis.org/publ/bcbs261.htm Abstract of "Margin requirements for non-centrally cleared derivatives - final document", September 2013 Margin requirements for non-centrally cleared derivatives - final document 2013-09-02T09:00:00Z The Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO) released today the final framework for margin requirements for non-centrally cleared derivatives. Margin requirements for non-centrally cleared derivatives - final document 2013-09-02T09:00:00Z BIS liquidity OTC derivatives CCP collateral initial margins variation margins G20 Reforms re-hypothecation non-centrally cleared PDF version http://www.bis.org/publ/bcbs261.pdf September 2013 Bank for International Settlements: BCBS Publications 261 http://www.bis.org/publ/joint33.htm Full text of "Mortgage insurance: market structure, underwriting cycle and policy implications" - Final document released by the Joint Forum, August 2013. Mortgage insurance: market structure, underwriting cycle and policy implications - final document 2013-08-20T10:00:00Z This report on "Mortgage insurance: market structure, underwriting cycle and policy implications" examines the interaction of mortgage insurers with mortgage originators and underwriters. The makes the following set of recommendations directed at policymakers and supervisors which aim at reducing the likelihood of mortgage insurance stress and failure in such tail events. Mortgage insurance: market structure, underwriting cycle and policy implications - final document 2013-08-20T10:00:00Z BIS cycles mortgage originators incentives arbitrage underwriting PDF version http://www.bis.org/publ/joint33.pdf August 2013 Bank for International Settlements: BCBS Publications 33 http://www.bis.org/publ/joint31.htm Abstract of "Longevity risk transfer markets: market structure, growth drivers and impediments, and potential risks", August 2013 The ageing population phenomenon being observed in many countries poses serious social policy challenges. Longevity risk - the risk of paying out on pensions and annuities longer than anticipated - is significant when measured from a financial perspective. Longevity risk transfer markets: market structure, growth drivers and impediments, and potential risks is a forward-looking report released by the Joint Forum on longevity risk transfer (LRT) markets. It makes the following recommendations ... Longevity risk transfer markets: market structure, growth drivers and impediments, and potential risks - consultative report 2013-08-15T13:17:00Z The ageing population phenomenon being observed in many countries poses serious social policy challenges. Longevity risk - the risk of paying out on pensions and annuities longer than anticipated - is significant when measured from a financial perspective. Longevity risk transfer markets: market structure, growth drivers and impediments, and potential risks is a forward-looking report released by the Joint Forum on longevity risk transfer (LRT) markets. It makes the following recommendations ... Longevity risk transfer markets: market structure, growth drivers and impediments, and potential risks - consultative report 2013-08-15T13:17:00Z BIS insurance arbitrage pension underwriting PDF version http://www.bis.org/publ/joint31.pdf August 2013 Bank for International Settlements: BCBS Publications 31 http://www.bis.org/publ/bcbs252.htm Abstract of "Sound management of risks related to money laundering and financing of terrorism - consultative document", June 2013 In February 2012, the Financial Action Task Force (FATF) released a revised version of the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation (the FATF standards), to which the Committee provided input. The Committee's intention in issuing this consultative paper is to support countries' implementation of the FATF standards with respect to their banks and banking groups, by exploring complementary areas and ... Sound management of risks related to money laundering and financing of terrorism - consultative document 2013-06-27T08:00:00Z The Basel Committee has a long-standing commitment to promote the implementation of sound policies and procedures to combat money laundering (ML) and the financing of terrorism (FT). Its commitment to combating ML and FT is fully aligned with its mandate to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability. Prudent management of risks related to ML and FT along with effective supervisory oversight are critical in protecting the safety and soundness of banks and the integrity of the international financial system. The inadequacy or absence of sound management can increase the exposure of banks to serious risks, especially reputational, operational, compliance and concentration risks. Recent developments, including robust enforcement actions taken by regulators and the corresponding direct and indirect costs incurred by banks due to their lack of diligence in applying appropriate risk management policies, procedures and controls, have highlighted those risks. These costs and damage could probably have been avoided had the banks maintained effective risk-based policies and procedures to protect against risks arising from ML and FT. In February 2012, the Financial Action Task Force (FATF) released a revised version of the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation (the FATF standards), to which the Committee provided input. The Committee's intention in issuing this consultative paper is to support countries' implementation of the FATF standards with respect to their banks and banking groups, by exploring complementary areas and leveraging the expertise available in both organisations. Therefore, these guidelines are intended to be ... Sound management of risks related to money laundering and financing of terrorism - consultative document 2013-06-27T08:00:00Z BIS FATF CDD criminal activities PDF version http://www.bis.org/publ/bcbs252.pdf June 2013 Bank for International Settlements: BCBS Publications 252 http://www.bis.org/publ/bcbs242.htm Full text of " Margin requirements for non-centrally cleared derivatives - Second Consultative Document", February 2013 Margin requirements for non-centrally cleared derivatives - Second consultative document 2013-02-15T08:21:00Z The Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO) have today published a second consultative paper which represents a near-final proposal on margin requirements for non-centrally-cleared derivatives. Margin requirements for non-centrally cleared derivatives - Second consultative document 2013-02-15T08:21:00Z BIS liquidity OTC derivatives CCP collateral initial margins variation margins G20 Reforms re-hypothecation non-centrally cleared PDF version http://www.bis.org/publ/bcbs242.pdf February 2013 Bank for International Settlements: BCBS Publications 242 http://www.bis.org/publ/joint30.htm Summary of Mortgage insurance: market structure, underwriting cycle and policy implications - Consultative paper released by the Joint Forum, February 2013. Mortgage insurance: market structure, underwriting cycle and policy implications - Consultative paper released by the Joint Forum 2013-02-11T07:46:00Z This consultative report on Mortgage insurance: market structure, underwriting cycle and policy implications examines the interaction of mortgage insurers with mortgage originators and underwriters. The report sets out the following recommendations directed at policymakers and supervisors with the aim of reducing the likelihood of mortgage insurance stress and failure in such tail events. Mortgage insurance: market structure, underwriting cycle and policy implications - Consultative paper released by the Joint Forum 2013-02-11T07:46:00Z BIS insurance regulation supervision cycles mortgages mortgage originators incentives arbitrage PDF version http://www.bis.org/publ/joint30.pdf February 2013 Bank for International Settlements: BCBS Publications 30 http://www.bis.org/publ/bcbs239.htm Abstract of "Principles for effective risk data aggregation and risk reporting", January 2013. The financial crisis that began in 2007 revealed that many banks, including global systemically important banks (G-SIBs), were unable to aggregate risk exposures and identify concentrations fully, quickly and accurately. This meant that banks' ability to take risk decisions in a timely fashion was seriously impaired with wide-ranging consequences for the banks themselves and for the stability of the financial system as a whole. The Basel Committee's Principles for effective risk data aggregation will strengthen banks' risk data aggregation capabilities and internal risk reporting practices. Implementation of the principles will strengthen risk management at banks - in particular, G-SIBs - thereby enhancing their ability to cope with stress and crisis situations. Principles for effective risk data aggregation and risk reporting 2013-01-09T11:00:00Z The financial crisis that began in 2007 revealed that many banks, including global systemically important banks (G-SIBs), were unable to aggregate risk exposures and identify concentrations fully, quickly and accurately. This meant that banks' ability to take risk decisions in a timely fashion was seriously impaired with wide-ranging consequences for the banks themselves and for the stability of the financial system as a whole. The Basel Committee's Principles for effective risk data aggregation will strengthen banks' risk data aggregation capabilities and internal risk reporting practices. Implementation of the principles will strengthen risk management at banks - in particular, G-SIBs - thereby enhancing their ability to cope with stress and crisis situations. Principles for effective risk data aggregation and risk reporting 2013-01-09T11:00:00Z BIS bank resolution corporate governance data aggregation Risk reporting PDF version http://www.bis.org/publ/bcbs239.pdf January 2013 Bank for International Settlements: BCBS Publications 239