The Basel Committee's work programme

Updated 5 June 2018

The Basel Committee maintains a two-year work programme that outlines the strategic priorities for its policy, supervision and implementation activities. The programme is endorsed by the Group of Governors and Heads of Supervision and is developed under the direction of the Committee Chairman.

2018-19 work programme

About the Committee's work

Details of the 2018-19 work programme

Finalising ongoing policy initiatives and initiating targeted policy development

The finalisation of Basel III in December 2017 was an important milestone for the Committee's post-crisis policy development agenda. Nevertheless, a limited set of ongoing policy initiatives continues to require attention. Most notably, this includes revisions to the revised market risk framework, which the Committee aims to finalise shortly so that regulators and banks have sufficient time to implement the framework by 1 January 2022.

Other policy initiatives that have been, or are expected to be, finalised in 2018-19 include revisions to the global systemically important bank (G-SIB) assessment framework and the "Phase III" revisions to the Pillar 3 disclosure framework. The Committee will continue to review potential longer-term revisions to the regulatory treatment of accounting provisions and will issue responses to Basel III-related frequently asked questions, as and when relevant.

In December 2017, the Committee published a discussion paper on the regulatory treatment of sovereign exposures, noting that no consensus had been reached on possible changes at this stage. However, the Committee indicated that the issues raised in the paper are important, and could benefit from a broader discussion. The views of stakeholders were therefore sought to help inform the Committee's longer-term thinking on this issue. This feedback, along with the results of the accompanying quantitative impact study, will be discussed later in 2018.

The Committee will pursue a limited number of new policy-related initiatives. These comprise work related to cyber risk and operational resilience, as well as work on proportionality. The latter will initially take the form of a stocktaking exercise on current proportionality practices in jurisdictions.

International macroprudential policy standards and guidelines will continue to be promoted, including work related to cross-sectional and time-varying risks.

The Committee will also monitor and take note of the work of the Network for Greening the Financial System.

Ensuring full, timely and consistent implementation

The Committee continues to expect full, timely and consistent implementation of all elements of its post-crisis reforms.

In 2017, the Committee completed its assessments of all members' implementation of the Liquidity Coverage Ratio (LCR) and approved the work plan for assessing the implementation of the Net Stable Funding Ratio (NSFR) and the large exposures framework, as well as the revised internal Regulatory Consistency Assessment Programme (RCAP) Handbook.

In 2018-19, the Committee will continue to monitor and report the actions taken or planned by members to address findings identified in assessment reports. With respect to the timeliness of implementation, the Committee will continue its semiannual monitoring and reporting on the adoption of Basel III standards in domestic regulations, with the next report scheduled for publication in October 2018.

Promoting strong supervision

The Committee continues to promote strong supervision. In 2018, the Committee will organise discussion sessions and workshops on emerging supervisory topics that pose challenges for member authorities. These include how supervisors should comprehensively assess risks that may arise when banks adapt and optimise their business models. A closely related topic is the supervisory oversight of risk management practices, especially in the areas of lending standards, collateral management, valuation practices and oversight of third-party origination practices. The Committee will also discuss the interaction between prudential supervisory oversight and macroprudential measures, including those relating to housing markets.

The Committee plans to finalise a set of principles on stress-testing practices in 2018, and will maintain a network of experts on stress-testing developments. The Committee will also continue to review Pillar 2 (supervisory review process) practices in member jurisdictions and, as needed, develop further guidance to promote sound and locally appropriate Pillar 2 practices.

Implementation of the Principles for effective risk data aggregation and risk reporting and the Principles for effective supervisory colleges will continue to be monitored. As member jurisdictions start to implement the 2016 standard on interest rate risk in the banking book (IRRBB), the Committee will begin monitoring and sharing information on IRRBB implementation.

Evaluating and monitoring the impact of post-crisis reforms, and assessing emerging risks

Now that most of its post-crisis policy reform agenda is complete, the Committee will devote more time to evaluating and monitoring the impact of its reforms, and assessing emerging risks.

The Committee's evaluation work covers a broad range of assessments. In some cases, evaluations have already commenced (eg the leverage ratio treatment of initial margin and its impact on client clearing, which is being conducted jointly with other standard-setting bodies and the Financial Stability Board (FSB)). The Committee has developed a broader evaluation work programme, which would evaluate the effectiveness of individual standards, the interactions and coherence among standards, and the broader macroeconomic impact of the Committee's post-crisis reforms. The explicit purpose of any evaluation is not to re-open previous policy decisions. The Committee will also contribute to FSB-led evaluations, including the evaluation of the impact of post-crisis reforms on financial intermediation.

In addition to overseeing these evaluations, the Committee has set up a comprehensive work plan to monitor and assess emerging risks and banks' behavioural responses to post-crisis reforms. The Committee will also continue to oversee the development of the Basel III monitoring exercises, which monitor the quantitative impact of regulatory reforms.

In 2018, the Committee will also take stock of existing initiatives related to crypto-assets, and consider whether any measures are warranted at this stage. The Committee will also monitor and assess the risks emerging from fintech, and the impact on supervisory and regulatory strategies.

About the Committee's work

The core of the work undertaken by the Basel Committee focuses on:

  • exchanging information on developments in the banking sector and financial markets to help identify current or emerging risks for the global financial system 
  • sharing supervisory issues, approaches and techniques to promote common understanding and improve cross-border cooperation 
  • establishing and promoting global standards for the regulation and supervision of banks, as well as guidelines and sound practices 
  • addressing regulatory and supervisory gaps that pose risks to financial stability 
  • monitoring the implementation of BCBS standards in member countries and beyond to encourage their timely, consistent and effective implementation 
  • consulting with central banks and bank supervisory authorities which are not members of the BCBS to benefit from their input into the BCBS policy formulation process and to promote the implementation of BCBS standards, guidelines and sound practices beyond BCBS member countries 
  • coordinating and cooperating with other financial sector standard setters and international bodies, particularly those involved in promoting financial stability