Stefan Ingves, Chairman of the Basel Committee, has spoken on current work and future priorities of the Basel Committee. These include:
- completing reforms by end 2014. The Basel Committee will soon also launch a review of standardised approaches and proposals for a capital framework for interest rate risk in the banking book;
- monitoring implementation;
- assessing the impact of regulatory reform, in terms of unintended costs for the industry and regulatory arbitrage;
- finding the right balance between risk sensitivity, simplicity and comparability, with a discussion paper scheduled for the coming months. The Basel Committee stresses that any change would be designed to strengthen the current Basel 3 framework, rather than holding it off; and
- enhancing the effectiveness of both micro- and macroprudential supervision, including examination of the use of microprudential tools for macroprudential purposes.