Latest news with #BaselCommitteeonBankingSupervision
Reuters
13-06-2025
- Business
- Reuters
Basel Committee makes climate risk disclosure for bank regulators voluntary
LONDON, June 13 (Reuters) - The world's forum for banking regulators published a framework for disclosing climate-related risks on Friday, making the implementation voluntary, following pushback from the U.S. The Basel Committee on Banking Supervision, made up of banking regulators and central bankers from the G20 economies and other countries, said it would be up to national regulators to decide whether to require banks to disclose climate-related risks, a proposal that has been under discussion for years. In a statement, the committee said it acknowledged "that the accuracy, consistency and quality of climate-related data are evolving, and therefore it is necessary to incorporate a reasonable level of flexibility into the final framework." Policymakers and banking regulators around the world have been debating the extent to which climate change should be embedded into regulation and central bank policy, a tussle analysts say is likely to shape decision making. The framework asks banks to identify how climate risk could impact their financial returns and risk profile and map how they intend to respond to it. It asks them to consider both "physical risk" like flooding and heat stress and "transition risk", which includes changes to climate policy affecting agriculture. In Europe, authorities have been ramping up efforts to address climate-related risks, with the European Central Bank and others making management of climate risks a key priority. In the U.S., however, efforts have been scaled back or even shelved under the new administration of President Donald Trump. In January, the Federal Reserve withdrew from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), the main global body devoted to policing climate risk in the financial system, while a number of top U.S. commercial banks have dropped climate targets. The updated framework follows a lengthy consultation process which resulted in several changes to Basel's original proposal, first published in November 2023, the Basel Committee said. As well as stressing the voluntary nature of the proposal, the Basel Committee removed the requirement for banks to report on the carbon emissions associated with their capital markets activities and trading, known in the industry as "facilitated emissions." The committee said it would monitor relevant developments, including the implementation of other reporting frameworks and disclosure practices, and consider whether any revisions to the framework would be warranted in future.
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Business Standard
12-06-2025
- Business
- Business Standard
Canara Bank to raise up to ₹9,500 crore capital through bond issuance
Canara Bank's Board of Directors, at its meeting held on 12 June 2025, approved a capital raising plan for the financial year 2025–26, amounting to up to ₹9,500 crore. The capital will be raised through the issuance of debt instruments, specifically Basel III-compliant Additional Tier I (AT1) and Tier II bonds. The initiative is aimed at strengthening the bank's capital adequacy, supporting future business growth and ensuring compliance with Basel III norms. As part of the plan, the bank will raise up to ₹3,500 crore through AT1 bonds during the financial year, subject to market conditions and necessary approvals. AT1 bonds are unsecured, perpetual debt instruments issued by banks under the Basel III framework. These bonds carry no fixed maturity and offer higher yields, with provisions allowing coupon payment cancellation and principal write-down or conversion into equity if the bank's capital falls below a set threshold. In addition, the bank will raise up to ₹6,000 crore through the issuance of Basel III-compliant Tier II bonds, also subject to market conditions and regulatory approvals. Tier II bonds are debt instruments with a minimum maturity of five years and are used to enhance a bank's total capital. Unlike AT1 bonds, Tier II bonds do not allow interest deferral if the bank remains solvent and profitable. Basel III is a global regulatory framework developed by the Basel Committee on Banking Supervision following the 2008 financial crisis. It mandates that banks maintain a minimum Common Equity Tier 1 (CET1) capital ratio of 4.5 per cent of risk-weighted assets (RWAs), with total Tier 1 capital (CET1 + AT1) at a minimum of 6 per cent and total capital (Tier 1 + Tier 2) at a minimum of 8 per cent.
Yahoo
28-03-2025
- Business
- Yahoo
Banks' Spot Crypto Holdings Continue to Collapse as Firms Move to ETPs
Banks across the globe held a total of 341.5 billion euros ($368.3 billion) in crypto assets under custody in the second quarter of 2024 but spot crypto assets now make up less than 3% of banks' holdings — down significantly from a few years ago, data by standard setter Basel Committee on Banking Supervision (BCBS) showed on Wednesday. BCBS, which focuses on setting measures to ensure the stability of banks, gathered voluntary and confidential submissions from 176 banks — of which 115 are internationally active — in June 2024. The data showed that just 29 banks contributed to the 341.5 billion euro figure, and the vast majority hold exchange-traded products tracking crypto over cryptocurrencies. Global watchdogs have been keeping a close eye on how interlinked the financial sector is with crypto following the collapse of crypto-friendly banks like Signature Bank and Silicon Valley Banks in 2023. The BCBS also recommended that banks' spot crypto exposure should not exceed 2% in December 2022. Banks appear to be following through on this; their exposure to spot crypto holdings fell 44% between 2021 to 2022. As of the June 2024 survey, banks held almost no spot crypto, at 2.46%, instead preferring exchange-traded products. About 92.5% of banks' holdings are now in these more regulated products tracking crypto prices, rather than crypto assets themselves, the BCBS survey showed. Read more: Blackrock to List Bitcoin ETP in First Crypto Foray Outside of U.S. Sign in to access your portfolio
