BCBS to consult on Pillar 3 climate risk disclosures by end of 2023

The Bank for International Settlements (BIS) published a summary of the recent Basel Committee (BCBS) meetings, a report on central bank asset purchases in response to the COVID-19 crisis, a bulletin that discusses key issues surrounding the crypto market, and an update on a prototype for cross-border payments under Project Nexus.

At its March meetings, BCBS discussed its work related to the development of a Pillar 3 disclosure framework for climate-related financial risk, took stock of emerging risks to the banking system, and advanced review of Core principles for effective banking supervision. Below are the decisions and outcomes of these meetings:

• BCBS will issue a consultation paper on the Pillar 3 disclosure framework for climate-related financial risks by the end of 2023. This framework would complement, and be interoperable with, parallel disclosure initiatives under way by the International Sustainability Standards Board and other authorities.
• BCBS agreed to consult on revisions resulting from the ongoing review of the Basel Core Principles by mid-2023.
• BCBS approved a workplan to continue to assess and mitigate risks from crypto-assets to the global banking system. This includes a set of targeted reviews of the prudential treatment, including with regard to the treatment of permissionless blockchains and the eligibility criteria for "Group 1" stablecoins. BCBS will also continue to monitor bank crypto-asset activities and exposures, including their role as potential issuers of stablecoins and tokenized deposits, custodians of crypto-assets and interconnections with other nodes of the crypto-asset ecosystem.
• As part of the Regulatory Consistency Assessment Program, BCBS reviewed and approved the assessment reports on South Africa's implementation of the Net Stable Funding Ratio and large exposures framework. The reports will be published in April 2023.

Related links:

• BCBS on review of global banking system
• Paper on central bank asset purchases
• Bulletin on crypto shocks
• Update on Project Nexus