Peru's Superintendence of Banking, Insurance and Private Pension Fund Administrators announced that Lima is hosting the Basel Consultative Group, the first time the forum has met in South America. In the context of that meeting, the authority highlighted discussion of current banking supervision challenges and presented Peru's progress in strengthening its stress testing framework, including the incorporation of climate-related financial risks. The Basel Consultative Group brings together authorities and experts in banking regulation and supervision. The agenda covered proportional implementation of Basel III standards, stronger stress testing, and development of more forward-looking, risk-based supervisory tools. In his opening remarks, Superintendent Sergio Espinosa said supervisors are facing a broader set of challenges beyond traditional risks, including digitalisation, cyber risk, climate risks, geopolitical uncertainty, and the growth of non-bank financial intermediation.