- Almost 300 central bankers and banking supervisors attended the International Conference of Banking Supervisors (ICBS) to discuss the future of supervision and the digitalisation of finance.
- ICBS participants exchanged views and insights on enhancing supervisory effectiveness, simplifying and modernising regulation and supervision, the digitalisation of finance and linkages between banks and non-bank financial institutions.
- Basel Committee Chair delivers keynote speech on strong and modern supervision.
Some 300 central bankers and banking supervisors representing more than 60 jurisdictions met on 30 September–1 October 2026 in Bali, Indonesia, for the 24th International Conference of Banking Supervisors (ICBS).
“It is a great honour for Bank Indonesia and the Indonesian Financial Services Authority to welcome delegates from around the world to Bali for the 24th International Conference of Banking Supervisors. By jointly hosting these meetings, we seek to facilitate meaningful dialogue and knowledge exchange among supervisory authorities, strengthen international cooperation, and contribute to a more resilient global banking system. The financial landscape continues to evolve, shaped by greater interconnectedness, changing business models and rapid technological advancement. This calls for a strong prudential framework, complemented by effective, forward-looking and agile supervision. As digitalisation and emerging technologies continue to transform banking, we must strike the right balance between innovation and resilience, supported by sound governance and effective oversight. Stronger cooperation across authorities and borders is also essential, and this event provides an important platform to deepen such collaboration in safeguarding trust and financial stability.”
Destry Damayanti, Governor of Bank Indonesia
The ICBS, which was hosted by Bank Indonesia and the Indonesian Financial Services Authority, was a timely opportunity for participants to exchange views and insights on the future of banking supervision and the implications of the ongoing digitalisation of finance. Erik Thedéen, Chair of the Basel Committee and Governor of Sveriges Riksbank, delivered a keynote speech on strong and modern supervision.
“The ICBS is a unique forum for the global supervisory community to exchange experiences, challenge our thinking and strengthen our collective ability to safeguard financial stability. My sincere thanks to Bank Indonesia and the Indonesian Financial Services Authority for their outstanding hospitality and for bringing us together in Bali for such a productive and forward-looking conference.”
Erik Thedéen, Chair of the Basel Committee and Governor of Sveriges Riksbank
Discussions at the ICBS included:
- Best practices for enhancing supervisory effectiveness. The Committee’s recent revisions to its Core principles for effective banking supervision place greater emphasis on how supervisors exercise judgment to achieve effective supervisory outcomes. The Committee has also developed a suite of practical tools supervisors can use, at their discretion, in their day-to-day work. Participants exchanged views and experiences on their approaches to judgment-led, risk-based supervision and efforts to improve supervisory effectiveness.
- Simplifying and modernising regulation and supervision. Participants discussed whether there are areas of undue regulatory and supervisory complexity that can be simplified without diluting the resilience of the global financial system. Examples included placing greater focus on the most material risks, harnessing technological innovation responsibly, applying proportionality where relevant, enhancing transparency and comparability, and requiring rigorous cost-benefit analysis
- The implications of the ongoing digitalisation of finance for banks and supervisors, including artificial intelligence (AI), cryptoassets and operational resilience. Participants exchanged views on the potential risks AI presents to banks and the potential opportunities, including enhanced efficiency. Participants exchanged views on the ways in which supervisors are using AI, and how supervisory expectations are evolving as AI capabilities continue to grow. Participants also discussed supervisory approaches and challenges in overseeing risks from cryptoassets. Participants also exchanged views on supervisory efforts to enhance operational resilience, including banks’ reliance on a small number of critical third-party service providers and the growing risks of cyber attacks and broader information and communication technology risks.
- Understanding and managing linkages between banks and non-bank financial institutions (NBFIs). Participants exchanged views on recent trends shaping bank-NBFI linkages, including synthetic risk transfers, supervisory approaches to overseeing and mitigating risks from interlinkages and data needs and gaps.
“Over the past two days, bank supervisors and regulators discussed numerous future challenges that require careful preparation, including business transformations driven by the growing use of crypto-related technology and frontier artificial intelligence. These discussions align with Indonesia’s efforts to implement broader banking activities and expand business opportunities for banks. At the same time, it is essential to maintain regulatory balance to anticipate emerging risks associated with this broader scope of activities.”
Friderica Widyasari Dewi, Chairperson of the Indonesian Financial Services Authority