The Basel Committee on Banking Supervision (BCBS) has published finalised targeted adjustments to its standard on interest rate risk in the banking book (IRRBB). The changes have been implemented to address problems with how the current methodology captures interest rate changes during periods when rates are close to zero. The revised standard should be implemented by 1 January 2026. The revised text will be incorporated into the consolidated Basel Framework.

The Basel Committee on Banking Supervision (BCBS) has finalised a technical amendment (TA) to the Basel Framework concerning the hedging of counterparty credit risk (CCR) exposures. The amendment, first consulted on in November 2024, refines how banks apply guarantees and credit derivatives providing fixed or capped protection to hedge CCR arising from derivative exposures under the standardised approach to counterparty credit risk (SA-CCR) or the internal models method (IMM). The finalised amendment introduces clarifications to the calculation of exposure at default (EAD), treatment of proportionate protection, and application of haircuts for currency and maturity mismatches, aligning the treatment with that of eligible collateral. BCBS members have agreed to implement the revised text as soon as practical and within three years at the latest.

The Basel Committee on Banking Supervision (BCBS) has published final guidelines for counterparty credit risk (CCR) management, replacing ‘”Sound practices for banks” interactions with highly leveraged institutions’ published in January 1999. The guidelines address long-standing weaknesses in CCR management by emphasising comprehensive due diligence, effective credit risk mitigation strategies, diverse CCR measurement metrics, and robust governance frameworks.

The Basel Committee on Banking Supervision (BCBS) has launched a public consultation to update the Principles for the Management of Credit Risk, originally published in 2000. These principles guide banking supervisory authorities in assessing banks' credit risk management across four main areas: creating a suitable credit risk environment, operating a sound credit-granting process, maintaining proper credit administration, measurement, and monitoring, and ensuring adequate controls over credit risk. Responses are sought by 21 March 2025. All comments will be published on the BIS website unless confidentiality is requested.

The Basel Committee on Banking Supervision (BCBS) has published a proposed technical amendment to the Basel Framework to clarify the treatment of rental income from investment properties under the standardised approach for operational risk. The amendment seeks to resolve an inconsistency by removing this type of income from the ‘other operating income’ category—where it is currently listed despite often arising from operating leases, which are meant to be excluded—and instead, including it under ‘interest income’ which will now explicitly cover income from both financial and operating leases. This change is intended to improve the accuracy of the business indicator (BI), which is used to calculate operational risk capital requirements. The BCBS has also issued new frequently asked questions (FAQs) on credit risk to support consistent global implementation. Responses are sought by 25 July 2025.

The Basel Committee on Banking Supervision (BCBS) has published a progress report to G20 finance ministers and central bank governors on its analysis of the 2023 banking turmoil. The report summarises empirical analysis on liquidity risk dynamics and emphasises the need to strengthen supervisory effectiveness and assess the performance of specific Basel Framework features.

The Basel Committee on Banking Supervision (BCBS) has published Regulatory Consistency Assessment Programme (RCAP) reports on the implementation of the net stable funding ratio (NSFR) and large exposures framework in the EU under the Basel III regulatory framework. The BCBS places a high priority on the implementation of regulatory standards underpinning the Basel III framework, and says the prudential benefits from adopting the Basel standards can only fully accrue if these are implemented in a full, timely and consistent manner by all member jurisdictions. The Committee established the RCAP to monitor, assess and evaluate its members’ implementation of the Basel III framework.

The Basel Committee on Banking Supervision (BCBS) has published details of a range of initiatives that were discussed at a virtual meeting on 12 and 13 March 2025. Amongst other things, the BCBS took stock of the work it had carried out to strengthen supervisory effectiveness based on the lessons learned from the 2023 banking turmoil.  It also agreed to analyse global practices and recent developments related to information and communication technology risk management. Finally, it agreed to further investigate banks' interconnections with non-bank financial intermediation, with a particular focus on synthetic risk transfers.

The Basel Committee on Banking Supervision (BCBS) has issued a discussion paper on how climate scenario analysis (CSA) can be practically used to help strengthen the management and supervision of climate-related financial risks. It looks at the objectives of CSA exercises and relevant features to design and use them. Responses are sought by July 2024.

The Basel Committee on Banking Supervision (BCBS) has revised its ‘Core principles for effective banking supervision’—the de facto minimum standards for the sound prudential regulation and supervision of banks and banking systems. They are universally applicable and accommodate a range of banking systems and a broad spectrum of banks. They are also used by supervisors to assess the effectiveness of their regulatory and supervisory frameworks, and by the International Monetary Fund (IMF) and World Bank as part of the Financial Sector Assessment Program (FSAP) to evaluate the effectiveness of countries' banking supervisory systems and practices.

The Basel Committee on Banking Supervision (BCBS) met in Basel on 19–20 November 2024 and unanimously reaffirmed its expectation of implementing all aspects of the Basel III framework in full, consistently and expeditiously. Such a commitment was also recently reiterated by G20 Finance Ministers and Central Bank Governors.

The Basel Committee on Banking Supervision (BCBS) has published a report on the implications of the digitalisation of finance for banks and supervision. It considers the benefits and risks of new technologies and the emergence of new technologically enabled suppliers for the provision of banking services, and identifies eight implications for banks and supervisors relating to macro-structural elements, specific digitalisation themes, and capacity building and co-ordination.