The Bank for International Settlements’ Basel Committee on Banking Supervision approved a final standard for machine-readable Pillar 3 disclosures and revisions to the global systemically important bank assessment framework aimed at reducing year-end window dressing. It also approved the end-2025 G-SIB assessment results for submission to the Financial Stability Board before publication of the 2026 G-SIB list, advancing work previously outlined on disclosure modernisation and the G-SIB methodology. The Committee agreed to consult on additional Pillar 2 guidance after identifying shortcomings in banks’ management of interest rate risk in the banking book. It will also seek comment on whether the G-SIB framework should incorporate the treatment of cross-border exposures within the European banking union. Following discussions on artificial intelligence, the Committee agreed to review operational risk loss categories with a focus on cyber and AI developments, citing potential operational vulnerabilities from cyberattacks and correlated dependencies as AI becomes integrated into critical financial functions. The G-SIB window-dressing revisions and consultation on European banking union exposures are due later in October, while the interest rate risk consultation is planned for November. The machine-readable Pillar 3 standard and an update on the targeted review of banks’ cryptoasset exposures are expected around the end of 2026, alongside an update on possible revisions to the Committee’s liquidity risk principles.

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