Bank for International Settlements – BIS

The Basel Committee on Banking Supervision (BCBS) is consulting on proposed additional Pillar 2 guidance on interest rate risk in the banking book (IRRBB), aimed at strengthening banks’ risk management and supervisory oversight. The Committee has undertaken work to assess whether specific features of the Basel Framework continue to operate as intended. This work identified shortcomings in banks’ management of certain fundamental banking risks, including IRRBB. The proposals would introduce standalone guidelines to complement the existing IRRBB framework. Key areas include enhanced model risk management and validation, stress testing, IRRBB controls and hedging, treatment of embedded gains and losses, and additional short- and medium-term earnings indicators. The consultation also proposes the introduction of “Supervisory Information” to support ongoing monitoring and examinations, as well as a peer-comparison framework to help supervisors identify potentially excessive IRRBB risk more effectively. Comments are invited until 9 February 2027. Read the full consultative document here: https://lnkd.in/euNvG4wW

The Bank for International Settlements (BIS) and the Office of the United Nations Secretary-General's Special Advocate for Financial Health (UNSGSA) jointly organised a workshop on digital innovation in financial services and its implications for financial health on 4–5 November 2026 in Basel, Switzerland. The event brought together representatives from financial authorities, international organisations, financial services providers, civil society and academia to exchange perspectives on how digital innovation is shaping people's financial lives. Discussions explored the opportunities and risks that emerging technologies and innovative financial services present for financial health, as well as the role of different actors in promoting positive outcomes. A key message from the workshop was that the success of digital innovation should not be measured simply by increased access to and use of financial services, but more importantly by whether it leads to meaningful improvements in people's financial health and resilience. Participants also emphasised that these benefits do not arise automatically. Harnessing the opportunities of digital innovation while addressing its potential risks requires coordinated efforts from financial authorities, financial services providers and other stakeholders. The workshop provided a valuable opportunity to share experiences, strengthen dialogue and identify areas for collaboration towards improving financial health globally. Read related research at: https://bit.ly/4BIPEuz https://bit.ly/4jYZq5g #FinancialHealth #DigitalInnovation #FinancialInclusion #FinancialStabilityInstitute

Engagement with the private sector remains important against a backdrop of an ever more interconnected financial system, Deputy General Manager Andrea M Maechler said this week. Speaking at the Federal Reserve Bank of Chicago's 2026 Financial Markets Group Fall Conference, she explained how the BIS has facilitated cooperation among central banks and supervisors throughout its history, bringing policymakers together to discuss common challenges, exchange views and build consensus around international standards. "Through consultations, workshops and roundtables, we draw on the experience of market practitioners. This helps us understand how markets work, assess the practical implications of proposed measures and identify perspectives we might otherwise miss," Ms Maechler said. If a deeper collaboration is required, for example when hands-on partnership is needed to develop and test a practical solution or initiative, the BIS applies four principles: • Public purpose comes first. We solve public policy challenges, not a commercial interest or a technology in search of a use case. • Clear governance. Public authorities retain policy responsibilities. Private partners may contribute expertise and implementation capabilities. • Third, technological neutrality. We do not favour a particular tool or grant commercial advantages. • Fourth, experimentation must create public value. Read the speech: https://bit.ly/3WmyKSh Watch the Q&A with Chicago Fed President Austan Goolsbee: https://bit.ly/4zth3z7

The Basel Committee on Banking Supervision (BCBS) has published the finalised the text of its consolidated guidelines and sound practices and is welcoming comments on proposed consequential amendments to the Basel Framework until 21 December 2026. In 2025, the Committee began work to organise its guidelines and sound practices into a modular format to make it easier to access, maintain and update materials. It initiated a public consultation, and as a result of the input received the consolidated guidelines are being adopted without change. The Committee is now proposing consequential technical amendments to the Basel Framework. These proposals align cross-references and seek to further reduce the proliferation of guidance materials across the BCBS website. The deadline for comments on the changes is 21 December 2026. Read the full consultative document here: https://bit.ly/4t1eh1L #BaselCommittee #Supervision #FinancialStability

Artificial intelligence (AI) has moved rapidly from a specialised technology to a force with economy-wide implications. Its adoption and the investment supporting it are creating opportunities for the financial system – while potential over-investment and an opaque financing structure could create new financial vulnerabilities. In a speech at the Mexican Banking Association’s seminar on financial stability and markets, Alexandre Tombini, Chief Representative of the BIS Americas Office, outlined key considerations for policymakers and financial institutions. • The AI investment boom supports growth, including through infrastructure investment and demand for digital services. • The financing of the AI ecosystem build-out deserves close attention. Potential over-investment, complex debt structures and circular investment relationships can make concentration of risk more difficult to identify and assess. • AI offers significant benefits for the financial sector. It can strengthen areas such as fraud detection, credit assessment and operational efficiency. • Financial institutions’ reliance on common cloud providers, models and other third-party services potentially amplifies operational disruptions, correlated decisions and market stress. These dependencies can become financial stability concerns. • Cyber security and agentic AI require robust safeguards. As AI systems gain greater autonomy, frameworks with clear accountability, strong access controls and auditability will be essential. Mr Tombini concluded: “International cooperation can help reduce barriers to harnessing the power of AI and strengthen our collective capacity to manage its adverse effects.” https://bit.ly/4sJavdd

The Bank for International Settlements (BIS) was out in full force at Hong Kong FinTech Week x StartmeupHK 2026, sharing insights into its wide array of innovation projects and how it supports central banks in navigating technological change. At the event, Tommaso Mancini-Griffoli, Head of the BIS Innovation Hub, joined a panel alongside Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue on Navigating the New Frontier: AI, Tokenisation and Quantum in Global Finance. Alongside fellow panellists Denis Beau, Deputy Governor at the Banque de France and Georges Elhedery, Chief Executive of HSBC, Mr Mancini-Griffoli shared concrete examples of projects that are helping central banks to meet their mandates more easily. Projects including Noor, Aperta and Agora were on full display at the BIS Innovation Hub booth. Thanks to all those who visited and interacted with our teams. The intersection of central banking and technological change remained a key theme as BIS Chief Representative for Asia and the Pacific Tao Zhang facilitated a Global Leader Series Fireside Chat with former BIS General Manager Agustín Carstens. Delving into the topic of tokenisation, Benedicte N. Nolens, BIS Innovation Hub Hong Kong Centre Head, moderated a discussion with a panel of private sector participants.

The International Organization of Securities Commissions - IOSCO and the BIS's Financial Stability Institute convened the 21st annual IOSCO-FSI conference virtually on 28-29 October 2026. Under the theme “Strengthening resilience in a transforming financial landscape”, the event provided a forum for banking and securities regulators from close to 120 jurisdictions to exchange perspectives on emerging risks and policy challenges. Discussions focused on: • AI and the future of financial markets, including innovation, development and trust • Financial asset tokenisation • Operational resilience and cyber risk • Private markets and private credit The exchange of views demonstrated the value of cooperation across the banking and securities sectors, particularly as technological and market developments continue to reshape the financial system. We thank all speakers and participants for their valuable contributions and look forward to continuing our close cooperation with IOSCO. #securitiesregulation #bankingsupervision #financialstability #tokenisation #artificialintelligence #operationalresilience #cyberrisk #privatemarkets #FinancialStabilityInstitute #iosconextgen Fernando Restoy Lozano Rodrigo Buenaventura Tajinder Singh Valerie Szczepanik Richard Senner Ankur Singh Damian Borstel Johannes Ehrentraud Italo Borssatto Yaiza Cabedo Matthias Obrecht Raihan Zamil Klaus Löber Franklin Lacroce Avneesh Pandey Joanna Chan John Wennstrom Sarah Ek Damien Fennell Tracey Wingate Antonello Aquino

New BIS data out today: our latest international banking statistics and global liquidity indicators, covering data up to end-June 2026. Three key takeaways: • Cross-border bank credit grew by 11% year on year at end-June 2026, bringing the outstanding amount to $40.7 trillion. • Cross-border bank credit to emerging market and developing economies continued to expand rapidly, growing at annual rate of 8.9%. • The BIS global liquidity indicators reveal that the euro’s share of foreign currency credit has increased in both bank loans and international debt securities. Explore the full release and data at https://bit.ly/48gLpZA

A new keystone report by the BIS Committee on Payments and Market Infrastructures (CPMI), “The roles of central banks and central bank money in the evolving payment system”, examines how technological innovation, changing user demand and the emergence of new types of payment service providers and arrangements are transforming payment systems. It considers the implications of changes over recent decades for central banks and outlines the relevant policy tools, considerations and trade-offs; it builds on the analytical framework set forth by the Committee on Payment and Settlement Systems (CPSS) – predecessor to the CPMI – in its 2003 foundational publication on the role of central bank money in payment systems. “Payments are at the frontier of finance,” said Fabio Panetta, Governor of the Banca d'Italia - Eurosistema and Chair of the CPMI. “It is in the payments space that new technologies are first deployed, new business models take shape and new risks surface. Central banks cannot watch this frontier from a distance; they must understand change as it happens and, where necessary, help shape its course.” This report investigates innovations related to fast payment systems, non-bank payment service providers, tokenised deposits, stablecoins and programmable platforms. While growing diversity in payment arrangements may create opportunities, the report points out it may also introduce new interdependencies and complexity. The analysis reaffirms the fundamental role of central bank money as the anchor of trust in a modern economy’s payment system. It also highlights its complementary relationship with private sector means of payment and settlement assets. Read the full report here: https://bit.ly/4srwVPL #CPMI #FutureOfPayments

Technological innovation creates new challenges for deposit insurance schemes, which remain a core element of a stronger financial safety net, Pablo Hernández de Cos said. Addressing the Annual Conference of the International Association of Deposit Insurers (IADI), one of the global standard-setting bodies based at the BIS, he said the changing financial landscape brought risks in three main policy areas: 1. Risks to regulated financial institutions may come from sources outside the regulatory perimeter. 2. Emerging technologies introduce new vulnerabilities. Digital bank runs risk faster failures. Digital networks and communication channels may amplify stress events. Risks of severe operational incidents increase. 3. New forms of money or payment are emerging that could bring risk if adopted at scale. In the quarter century since the first international guidance, deposit insurance - protecting depositors from the loss of their deposits if a bank fails - has become a core element of a stronger financial safety net. But the protections, which are funded by member banks, are not necessarily appropriate for all new financial products. “Any decision to extend deposit insurance to such products should be based on whether they provide the same social value as bank deposits,” Mr Hernández de Cos said. Read the speech at https://bit.ly/48kBVfP #DepositInsurance #IADI #FinancialStability #IADI2026