Governors and Heads of Supervision reaffirm expectation to implement Basel III and discuss work on financial impact of extreme weather events

Press release  | 
12 May 2025
  • Group of Central Bank Governors and Heads of Supervision (GHOS) unanimously reaffirm their expectation to implement Basel III in full and consistently and as soon as possible.
  • The Basel Committee will publish a voluntary disclosure framework on climate-related financial risks for jurisdictions to consider.
  • GHOS agreed to prioritise further analysis on the financial risk implications of extreme weather events.

The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, met on 12 May 2025.

Basel III implementation

The GHOS took stock of the implementation status of the outstanding Basel III reforms, which were finalised in 2017. Members have continued to make good progress with implementation. About 70% of member jurisdictions have now implemented, or will shortly implement, the standards.

GHOS members unanimously reaffirmed their expectation of implementing all aspects of the Basel III framework in full, consistently and as soon as possible. The series of shocks to financial markets over the past few years have highlighted the importance of having a prudent global regulatory framework in place. The GHOS tasked the Committee with continuing to monitor and assess the full and consistent implementation of Basel III.

The GHOS also took note of the Committee's ongoing analytical and supervisory work to assess whether specific features of the Basel Framework performed as intended during the 2023 banking turmoil, such as liquidity risk and interest rate risk in the banking book.

Climate-related financial risks

GHOS members discussed the Committee's proposed Pillar 3 disclosure framework for climate-related financial risks. The Basel Committee will publish a voluntary disclosure framework for jurisdictions to consider.

The GHOS also discussed the Committee's broader work on climate-related financial risks. The GHOS tasked the Committee with prioritising its work to analyse the impact of extreme weather events on financial risks.

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. 

More information about the Basel Committee is available here.