The Bank for International Settlements reported that nearly 300 central bankers and banking supervisors from more than 60 jurisdictions met at the International Conference of Banking Supervisors in Bali on Sept. 30 and Oct. 1. Discussions focused on strengthening supervisory effectiveness, reducing undue complexity without weakening financial resilience, addressing the digitalization of finance and managing links between banks and nonbank financial institutions. Participants emphasized judgment-led, risk-based supervision consistent with the Basel Committee’s revised Core Principles and considered greater use of proportionality, technology and rigorous cost-benefit analysis. Digital finance discussions covered artificial intelligence risks and supervisory uses, crypto asset oversight, cyber and information and communication technology risks, and banks’ dependence on a small number of critical third-party providers. Officials also examined synthetic risk transfers and other bank-nonbank linkages, including supervisory approaches and gaps in the data needed to monitor interconnected risks.
Bank for International Settlements outlines global bank supervision priorities after meeting of nearly 300 officials
The Bank for International Settlements reported that nearly 300 officials from more than 60 jurisdictions discussed the future of global bank supervision. Priorities included more effective and proportionate supervision, responsible use and oversight of artificial intelligence, crypto asset and operational resilience risks, and closer monitoring of bank-nonbank financial linkages.