The Bank for International Settlements' Basel Committee on Banking Supervision published an update following its Stockholm meeting, reiterating that full and consistent implementation of the Basel III framework remains its priority and setting out work to strengthen supervisory effectiveness based on lessons from the 2023 banking turmoil. The Committee also outlined planned outputs on third-party risk management, Pillar 3 disclosures and climate-related financial risk disclosures. Work on supervisory effectiveness is focused on developing practical tools for supervisors covering liquidity risk, interest rate risk in the banking book, assessment of the sustainability of banks’ business models and the role of effective supervisory judgment, without changing or replacing existing standards or guidelines. In parallel, analytical work is assessing whether specific features of the Basel Framework, including liquidity risk and interest rate risk in the banking book, performed as intended during the 2023 turmoil. On digitalisation, the Committee reviewed feedback on its consultation on supervisory principles for the sound management of third-party risk and discussed analysis of banks’ reliance on third-party service providers, alongside exchanges on artificial intelligence and digital fraud. It also considered how technological innovation could make Pillar 3 disclosures more accessible by publishing them in a machine-readable format. Next steps include an update on the supervisory tools work by end-2025, publication of final third-party risk principles and consultation on a machine-readable Pillar 3 disclosure proposal by end-2025, and publication in June 2025 of a voluntary disclosure framework for climate-related financial risks for jurisdictions to consider, alongside further work to operationalise analysis of the financial risks of extreme weather events over the coming months.

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