Basel Committee Advances ICT Risk Management Report and Cryptoasset Review

2026-05-25 · Regulation · QuoteReporter

Basel Committee Advances ICT Risk Management Report and Cryptoasset Review

The Basel Committee on Banking Supervision, meeting on 19–20 May 2026, made significant progress on several key initiatives, including the publication of a report on information and communication technology (ICT) risk management practices and a targeted review of the prudential standard for banks' cryptoasset exposures. The Committee's discussions underscored the global banking system's resilience despite heightened tensions and uncertainty about the economic outlook.

Key Findings & Data

The Committee approved a report detailing a range of observed ICT risk management practices across jurisdictions, focusing on addressing non-malicious ICT incidents. This report is set to be published next month. The Committee also progressed its targeted review of the prudential standard for banks' cryptoasset exposures, with an update expected later this year. Furthermore, the Committee considered potential targeted updates to its Principles for Sound Liquidity Risk Management and Supervision, originally published in September 2008. Members noted that the global banking system remains resilient, supported by robust capital and liquidity positions, but emphasised the need for continued vigilance due to potential second- and third-order effects from heightened tensions.

Global Financial System Implications

The Committee's discussions highlighted the importance of enhanced supervisory scrutiny and cross-border information-sharing, particularly in the context of non-bank financial intermediation, including private credit. While banks' direct exposures to private credit appear contained in aggregate, indirect exposures and interconnections are a watchpoint. The Committee also took note of recent developments in artificial intelligence (AI) models and their implications for banks' cyber security, recognising both the potential benefits and risks. The global banking system's resilience is being tested by heightened uncertainty, including the conflict in the Middle East, which has increased uncertainty about the economic outlook.

Policy Signals

The Basel Committee's actions signal a continued focus on enhancing the resilience of the global banking system. The decision to review the prudential standard for banks' cryptoasset exposures reflects the evolving nature of financial risks. The consideration of updates to the liquidity risk management principles indicates a proactive approach to ensuring that regulatory frameworks remain fit for purpose in a changing financial landscape. The emphasis on ICT risk management practices and cyber security underscores the growing importance of operational resilience in the digitalised banking environment.

BIS Outlook

The Basel Committee has several workstreams on the horizon, including the finalisation of its work on machine-readable Pillar 3 disclosures, with an update expected later this year. The Committee also plans to consult on embedding the treatment of cross-border exposures within the European banking union in the global systemically important banks (G-SIB) framework to enhance its governance and transparency. Additionally, the Committee has approved a workplan to pursue further analytical work on the financial impacts of extreme weather events on banks, including how banks assess and manage physical risks and the role of insurance in mitigating these impacts.