The Bank for International Settlements’ Basel Committee on Banking Supervision reported outcomes from its Mexico City meeting, reaffirming that full and consistent Basel III implementation remains its top priority, approving final principles for the sound management of third-party risk in the banking sector, and agreeing to expedite a targeted review of elements of the prudential standard for banks’ cryptoasset exposures in response to recent cryptoasset market developments. The Committee also agreed to consult on making Pillar 3 disclosure data available in a machine-readable format to improve accessibility and usability. Under its Regulatory Consistency Assessment Programme, it approved assessment reports on the United Kingdom’s implementation of the Net Stable Funding Ratio and the large exposures framework, and decided to undertake a targeted review of the Net Stable Funding Ratio standard focused on areas where jurisdictional assessments have identified common deviations. Additional discussions covered risks associated with synthetic risk transfers, banks’ use of artificial intelligence, digital fraud trends, and further analytical work on the financial impacts of extreme weather events on banks. A consultation paper on machine-readable Pillar 3 data is due in December 2025. The final third-party risk principles and the United Kingdom assessment reports are scheduled for publication in December 2025, while consultation on consolidating the Committee’s guidelines and sound practices into a user-friendly format is expected in the first quarter of 2026.
Bank for International Settlements 2025-11-19
Bank for International Settlements’ Basel Committee finalises third-party risk management principles and accelerates review of cryptoasset exposure rules
The Basel Committee on Banking Supervision prioritized full Basel III implementation and approved principles for managing third-party risk. It will expedite a review of prudential standards for banks' cryptoasset exposures and consult on making Pillar 3 disclosure data machine-readable. The Committee approved assessment reports on the UK's Net Stable Funding Ratio and large exposures framework, and discussed risks related to synthetic risk transfers, AI, digital fraud, and extreme weather impacts on banks.