The Basel Committee on Banking Supervision last week approved a disclosure framework for banks’ exposure to crypto as the world’s central banks look to support market discipline and ensure sufficient information is available to evaluate risks. The committee set an implementation date for member jurisdictions of Jan. 1, 2026, and plans to publish details later this month.
The finalized framework comes with a set of public tables and templates covering banks’ cryptoasset exposures. BCBS made its recommendation after reviewing the responses to a consultation initially published in December 2022. The plans require banks to disclose qualitative information on their crypto activities and quantitative information on their exposure to crypto. The committee also approved a set of targeted revisions to the cryptoasset prudential standard.
BCBS also approved a set of targeted adjustments to its standard on interest rate risk in the banking book and also agreed to make targeted adjustments to the methodology used to calculate these shocks to better capture interest rate changes during periods when rates are close to zero. The updated standard will be published later this month, also with an implementation date of Jan. 1, 2026.
The committee agreed to consult on principles for the sound management of third-party risk, which would supersede the current guidance on outsourcing in financial services. According to the committee, the updated principles “reflect the evolution of a larger and more diverse environment of third-party service providers and would help provide a common baseline for banks and supervisors in managing third-party risks.” The consultation will be published later this month.
