The Basel Committee has agreed to publish a report on buffer usability and cyclicality in the Basel framework, following consideration of a 2021 interim evaluation report.
The committee met in July and September to discuss the current risks to and vulnerabilities of the global banking system.
The report will take into account the impact of Basel III over the past decade, particularly around bank resilience and systemic risk, and the lessons learned during the COVID-19 pandemic. It is expected to be published by the end of 2022.
The committee also discussed that increasing inflation rates and the risk of economic downturns could be a challenge for banks’ resilience. Vulnerabilities in the global banking system must be monitored carefully, with rapid developments over recent years exacerbating the risk of non-bank financial intermediation distress risk.
Additionally reviewed was climate-related financial risk, for which the committee is developing potential measures to combat.
