Basel Committee progresses work to strengthen supervisory effectiveness, initiates analytical work on information and communication technology risk management and synthetic risk transfers

• Basel Committee progresses work to strengthen supervisory effectiveness based on the lessons learned from the 2023 banking turmoil.
• Agrees to analyse global practices and recent developments related to information and communication technology risk management.
• Agrees to further investigate banks' interconnections with non-bank financial intermediation, with a particular focus on synthetic risk transfers.

The Basel Committee on Banking Supervision met virtually on 12 and 13 March 2025 to discuss a range of initiatives.

2023 banking turmoil

The Committee took stock of its work to develop a suite of practical tools to support supervisors in their day-to-day work as part of its efforts to strengthen supervisory effectiveness in light of the lessons learned from the 2023 banking turmoil. This work covers the supervision of liquidity risk and interest rate risk in the banking book, the assessment of the sustainability of banks' business models, and the importance of effective supervisory judgment. The Committee will publish an update on the outcome of this work by mid-2025.  

Information and communication technology

As part of its broader work on the supervision of operational resilience, and in light of the evolving technology landscape and rising information technology incidents globally, the Committee agreed to analyse recent developments and global practices related to banks' information and communication technology risk management. The Committee plans to publish in 2026 a range of practices report summarising its findings.

Non-bank financial intermediation

As part of its ongoing work to assess banks' interconnections with non-bank financial intermediation (NBFI), the Committee agreed to conduct over the coming year a deep-dive investigation on synthetic risk transfers (SRTs). SRTs can be used to transfer banks' credit risk to NBFI entities, helping banks manage risk and/or reduce regulatory requirements. While SRTs are not a new financial product, their use has grown and transactions structures have evolved in recent years. The investigation will seek to better assess the benefits and risks posed by SRTs.

Implementation of Basel III

As part of its Regulatory Consistency Assessment Programme, the Committee reviewed and approved the assessment reports on the implementation of the Net Stable Funding Ratio and large exposures framework by Türkiye. The reports will be published next month.

Note to editors: 

The Basel Committee is the primary global standard setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability. The Committee reports to the Group of Central Bank Governors and Heads of Supervision and seeks its endorsement for major decisions. The Committee has no formal supranational authority, and its decisions have no legal force. Rather, the Committee relies on its members' commitments to achieve its mandate. The Group of Central Bank Governors and Heads of Supervision is chaired by Tiff Macklem, Governor of the Bank of Canada. The Basel Committee is chaired by Erik Thedéen, Governor of Sveriges Riksbank. 

More information about the Basel Committee is available here.