As regulators and standards setters step up their efforts to craft disclosure requirements for climate-related risks, the Basel Committee on Banking Supervision is getting set to consult on overseeing compliance in the banking sector.
The group of global banking regulators said it’s developing potential disclosure, supervisory and enforcement measures to address climate-based financial risks to the global banking system.
It also said that it’s examining the use of the existing disclosure framework under the Basel III capital regime “to promote a common disclosure baseline for climate-related financial risks.”
On cryptoassets, the group said that it plans to release proposed capital rules for cryptos by mid-2022.
Following a consultation earlier this year, which recommended a hefty risk weight for cryptos such as Bitcoin, the Basel Committee said, “members reiterated the importance of developing a conservative risk-based global minimum standard to mitigate prospective risks from cryptoassets to the banking system.”
Additionally, the group said it will publish updated disclosure standards for revised market risk rules, and a set of voluntary disclosures for banks’ sovereign exposures, in the weeks ahead.
It has also agreed to replace the existing three-year cycle for reviewing the methodology for determining the global systemically important banks (G-SIBs), with an ongoing monitoring and review process.