The Basel Committee on Banking Supervision has updated its workplan for evaluating reforms made in the aftermath of the 2008 financial crisis. The updated plan will incorporate lessons learned from the COVID-19 crisis and will consist of several empirical analyses to study the extent to which post-crisis reforms have achieved their objectives, the interactions among the Basel III reforms and other post-crisis reforms and whether there are gaps in the regulatory framework or significant unintended side effects.
The committee noted that the banking system entered the coronavirus pandemic “on a more resilient footing.” However, it noted that “the outlook for global financial stability continues to be uncertain,” and flagged several factors that could heighten risks to the banking system, including the trajectory of the virus and associated containment measures, a protracted recovery period and the expiration of various relief measures. In addition, “the banking system’s operational resilience will continue to be tested in light of the increase in remote working and banks’ reliance on technology and third-party service providers,” the committee said.
