Between February 26-27, the Basel Committee on Banking Supervision (Basel Committee) met to discuss supervisory initiatives, review banking system risks, and promote Basel III implementation. During that meeting the Basel Committee discussed, among several topics, their strategic review, which consists of consulting members and stakeholders on their priorities, structure, and processes. The Basel Committee hopes to finalize this review this year. Among the many subject matters discussed and reviewed during this meeting, here are some of the highlights:

• The Committee reviewed collateralized loan obligations (CLOs) and leveraged loan vulnerabilities in the areas of “members' supervisory approaches to measuring and mitigating risks; the current regulatory treatment of these exposures; and the need to further quantify banks' direct and indirect exposures.”    
• The Committee discussed the banks preparation for LIBOR (London interbank offered rate) alternatives. While waiting on the Financial Stability Board to submit survey results on LIBOR exposures and related supervisory measures to G20 Finance Ministers and Central Bank Governors in July, the Basel Committee “stressed the need for banks to dedicate the necessary resources to understanding the impact of benchmark rate reforms on their business and making the necessary preparations for a smooth transition.” The Committee’s newsletter on benchmark rate reforms and regulatory and supervisory implications can be viewed here.
• The Task Force on Climate-related Financial Risks discussed their workplan and deliverables consisting of “[a] set of analytical reports on climate-related financial risks, including a literature review, and reports on the transmission channels of such risks to the banking system and on measurement methodologies…” and "[t]he development of effective supervisory practices to mitigate climate-related financial risks."
• The Committee reviewed the implementation status of Basel III across its member jurisdictions and discussed the progress of Basel III implementation.
• The Committee considered the effects of the coronavirus on financial stability. “The Committee encourages banks and supervisors to remain vigilant in light of the evolving situation and notes the importance of effective cross-border information sharing and cooperation when dealing with such shocks.”

More information on this Basel Committee meeting and a comprehensive list of the topics covered can be viewed here.