09/20/2021 | Press release | Distributed by Public on 09/20/2021 09:49
The Basel Committee today published a newsletter calling on banks to improve their resilience to cyber threats.
This follows the Committee's meetings of 15 and 20 September, during which it assessed risks and vulnerabilities to the global banking system and discussed supervisory and policy initiatives.
The risks from cyber threats and incidents to the global banking system have been increasing over the past years. Covid-19 has further heightened these risks.
In light of the evolving nature and scope of cyber risk, banks must continue to improve their resilience to cyber security threats and incidents.
To that end, the newsletter will help promote the widespread adoption of measures to strengthen banks' cyber security. It complements previous Committee publications, including the set of principles for operational resilience and operational risk published earlier this year.
The Committee also discussed climate-related financial risks. Following 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.
As part of this work, it is developing a set of related supervisory practices, which it plans to consult on later this year. It will also consider whether any additional disclosure, supervisory and/or regulatory measures are needed.
The Committee also welcomed the efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of global sustainability standards to improve the consistency, comparability and reliability of sustainability reporting, including the establishment of an International Sustainability Standards Board. The Committee will continue to liaise with the IFRS Foundation and other fora on climate-related disclosure initiatives.
Committee members also discussed the impact of the ongoing digitalisation and disintermediation of finance on the banking system, with an initial focus on retail banks. A deep-dive thematic analysis took stock of the drivers of banks' strategic decisions regarding financial technology. The Committee also reviewed the competitive landscape for the provision of retail banking, including non-bank financial and technological institutions, particularly the main supervisory challenges and risks. It will continue assessing these issues.