Basel Committee continues to prioritise Basel III implementation, approves final principles on third-party risks and agrees to expedite targeted review of cryptoasset standard

Press release  | 
19 November 2025
  • Reiterates priority to implement Basel III in full and consistently.
  • Approves final principles for the sound management of third-party risk.
  • Agrees to expedite a review of targeted elements of the prudential standard for banks' cryptoasset exposures.

The Basel Committee on Banking Supervision met in Mexico City on 18 and 19 November 2025 to discuss a range of initiatives.

Financial stability outlook

Committee members exchanged views on recent market developments and the outlook for the global banking system. Macroeconomic and geopolitical uncertainty, developments in credit and funding markets and various operational risks remain key areas of focus for many supervisors.

The Committee discussed the use of synthetic risk transfers (SRTs) by banks. SRT markets have grown rapidly over the last decade, and SRT investors have become an important source of capital relief for banks' credit risk. While regulatory and supervisory reforms have made SRTs simpler than credit risk transfers used before the Great Financial Crisis, it is important that banks and supervisors address potential risks stemming from such transactions.

Digitalisation of finance

The Pillar 3 disclosure framework enables market participants to access key information about the risk profiles of banks. The Committee agreed to consult on measures that would make these data available in a machine-readable format in order to improve the accessibility and usability of these data and provide an important public good. A consultation paper will be published in December.

The Committee also approved the final principles for the sound management of third-party risk in the banking sector, following its consultation last year.  The final principles will be published next month.

The Committee also discussed recent financial technology developments, including recent artificial intelligence use cases by banks and digital fraud trends. The Committee will continue to monitor such developments.

Implementation

The full and consistent implementation of Basel III continues to be the highest priority for the Committee, as recently reaffirmed by the Group of Governors and Heads of Supervision (GHOS), the Committee's oversight body.

As part of its Regulatory Consistency Assessment Programme (RCAP), the Committee reviewed and approved the assessment reports on the implementation of the Net Stable Funding Ratio (NSFR) and large exposures framework by the United Kingdom. The reports will be published next month. The Committee also agreed to undertake a targeted review of the NSFR standard focusing on areas where the RCAP jurisdictional assessments have identified common deviations across jurisdictions.

To enhance the accessibility of the Committee's outputs, the Committee agreed to consult on consolidating its guidelines and sound practices into a user-friendly format. Such an approach will result in a significant streamlining of existing guidance and would mirror the format of the consolidation of the Committee's standards. A consultation paper will be published in the first quarter of 2026.

The Committee also took note of the implementation of its prudential standard for banks' cryptoasset exposures. Given recent cryptoasset market developments, the Committee agreed to expedite a review of targeted elements of the standard.

Financial risks of extreme weather events

Following the direction provided by the GHOS earlier this year, the Committee agreed to pursue further analytical work on the financial impacts of extreme weather events on banks.

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.