- Exchanges experiences and views on developments in artificial intelligence for the global banking system and supervisors, modernisation efforts and implications for the Committee’s future work programme.
- Approves annual assessment exercise for global systemically important banks and revisions to reduce year-end window-dressing behaviour, and final standard for machine-readable Pillar 3 disclosures.
- Agrees to consult on additional Pillar 2 guidance on interest rate risk in the banking book and to provide an update on its targeted review of its prudential standard for banks’ exposures to cryptoassets by the end of the year.
The Basel Committee met in Indonesia on 28–29 September 2026, to discuss a range of analytical, supervisory and regulatory initiatives.
“This week’s meeting of the Basel Committee allowed our members to discuss risks and vulnerabilities to the global banking system and to advance our supervisory and regulatory initiatives. It was also an opportunity to take stock of our members’ modernisation efforts and to exchange initial views on the Committee’s work programme and how best to ensure that the Committee’s governance and delivery mechanisms are results-oriented, relevant and responsive to the evolving needs of the global banking system.”
Erik Thedéen, Chair of the Basel Committee and Governor of Sveriges Riksbank
Digitalisation
The Committee exchanged views on developments in artificial intelligence (AI). Since its previous meeting on 19–20 May 2026, these developments have continued to evolve at a remarkable speed. The financial footprint of the AI ecosystem is also expanding rapidly, accompanied by greater use of leverage and increasingly interconnected financing arrangements. While frontier AI offers the potential for substantial opportunities to enhance efficiency and innovation across financial services, it also has the potential to amplify operational vulnerabilities, including from cyber attacks and correlated dependencies in the financial system. Its integration into critical financial functions will require careful governance, robust risk management and ongoing supervisory attention.
The Committee also agreed to review the sufficiency and adequacy of existing “event type” loss categories set out in the operational risk framework, with a focus on cyber risk and AI developments. It will continue to monitor AI developments and discuss supervisory implications.
Following its consultation on machine-readable Pillar 3 disclosures, the Committee approved a final standard to provide for an innovative and efficient channel of bank disclosures. Pillar 3 disclosures by internationally active banks are an important source of key risk metrics. They help promote market discipline and provide external stakeholders with comprehensive information on banks’ risk profiles. Most banks, however, currently publish their disclosures in PDF format only, which makes it difficult to aggregate, process and compare data across banks. The final standard will be published around the end of the year.
Cryptoassets
The Committee is reviewing targeted elements of its prudential standard for banks’ exposures to cryptoassets. The Committee advanced its review and expects to provide an update by the end of the year.
Global systemically important banks
The Committee approved the results of the end-2025 assessment exercise under its framework for global systemically important banks (G-SIBs). The results will be submitted to the Financial Stability Board before it publishes the 2026 list of G-SIBs.
The Committee approved revisions to the assessment framework for G-SIBs to reduce window-dressing behaviour following its earlier consultation. Window-dressing by banks undermines the intended objectives of the Committee’s standards and risks disrupting the operations of financial markets. The revisions will be published later this month.
The Committee also agreed to publish an update to its methodology for comment on whether to incorporate the treatment of cross-border exposures within the European banking union in the G-SIB framework. The consultation will also be published later this month.
Interest rate risk in the banking book
The Committee published its standard on interest rate risk in the banking book (IRRBB) in 2016. The Committee has empirically assessed whether the standard is achieving its intended objectives and has identified specific shortcomings in banks’ management of IRRBB. Accordingly, the Committee agreed to consult on additional Pillar 2 guidance for banks and supervisors to strengthen implementation of the IRRBB framework. The consultation will be published next month.
Supervisory tools
Building on ongoing efforts to strengthen supervisory effectiveness, the Committee has developed additional voluntary supervisory tools on credit risk and governance. These tools facilitate the exchange of information on a range of supervisory practices and can help supervisors that choose to apply them to oversee risks at the banks under their supervision and tailor supervisory requirements to each institution’s size, complexity and risk profile.
Liquidity
The Committee is assessing targeted updates to its Principles for Sound Liquidity Risk Management and Supervision, which were published in September 2008. The Committee is considering the specific aspects that would benefit from updates to reflect regulatory, supervisory and structural developments since their publication. An update on this work will be provided later this year.
Anti-money laundering and combating the financing of terrorism
The Committee recently conducted a survey across 19 jurisdictions on anti-money laundering and combating the financing of terrorism (AML/CFT) risk assessment data and methodologies to identify key supervisory practices and challenges and held a related workshop. The survey and workshop identified a range of approaches that enhance risk-based supervision and effective supervisory judgment. A summary of the results will be published later this month.
Implementation
As part of its Regulatory Consistency Assessment Programme, the Committee approved the jurisdictional assessment reports on the implementation of the leverage ratio in Australia, Canada, Japan, Korea, Switzerland and the United Kingdom. The reports will be published later this month.
Note to editors:
The Basel Committee is the primary global standard setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability. The Committee reports to the Group of Central Bank Governors and Heads of Supervision and seeks its endorsement for major decisions. The Committee has no formal supranational authority, and its decisions have no legal force. Rather, the Committee relies on its members’ commitments to achieve its mandate. The Group of Central Bank Governors and Heads of Supervision is chaired by Tiff Macklem, Governor of the Bank of Canada. The Basel Committee is chaired by Erik Thedéen, Governor of Sveriges Riksbank.