Basel Committee Focused on Cyber Resilience, Climate and Digitalisation2021-09-27
In separate releases today the Basel Committee on Banking Supervision called for the following:
- Increased efforts to improve resilience to cyber threats
- Called for the development of a common set of global sustainability standards as they related to climate-related financial risks; and
- Discussed the impact of digitalization of finance on the banking system.
To that end, the Basel Committee today published a newsletter calling on banks to improve their resilience to cyber threats noting the widespread adoption of measures to strengthen banks cyber security.
The Committee also noted efforts on climate-related financial risks resulting from the publication of a series of analytical reports on climate-related financial risks in April, it is assessing the extent to which the current Basel framework adequately mitigates such risks. It is expected that a set of related supervisory practices will be published for consultation later this year and may include additional disclosure, supervisory and/or regulatory measures.
Finally, the Committee is looking at the impact of the ongoing digitalization and disintermediation of finance on the banking system, with an initial focus on retail banks. It is continuing to assess the supervisory challenges and risks in the competitive landscape for the provision of retail banking, including non-bank financial and technological institutions.
A copy of the press release can be viewed here.