• The Basel Committee continues to prioritise the full and consistent implementation of Basel III.
• Progresses work to strengthen supervisory effectiveness based on the lessons learned from the 2023 banking turmoil.
• Aims to finalise principles for the sound management of third-party risk in the banking sector by the end of 2025.

The Basel Committee on Banking Supervision met in Stockholm on 20 and 21 May 2025 to discuss a range of initiatives.

Financial stability outlook

Committee members exchanged views on recent market developments and the financial stability outlook for the global banking system. A heightened level of uncertainty and increased market volatility requires ongoing vigilance by banks and supervisors to ensure that the global banking system continues to maintain its resilience.

2023 banking turmoil

The Committee took stock of its work to develop a suite of practical tools to support supervisors in their day-to-day work as part of its efforts to strengthen supervisory effectiveness in the light of the lessons learned from the 2023 banking turmoil. The initial work covered the supervision of liquidity risk and interest rate risk in the banking book, the assessment of the sustainability of banks’ business models and the importance of effective supervisory judgment. The tools do not change or replace existing standards or guidelines and were designed to strengthen supervisory practices and effectiveness worldwide. The Committee will publish an update on the outcome of this work by the end of the year.

Following the meeting of the Group of Central Bank Governors and Heads of Supervision (GHOS) earlier this month, the Committee continues to prioritise the implementation of Basel III framework in full, consistently and as soon as possible. The Committee also discussed its analytical work to assess whether specific features of the Basel Framework performed as intended during the 2023 banking turmoil, such as liquidity risk and interest rate risk in the banking book.

Digitalisation of finance

The Committee reviewed the comments received on its consultation on supervisory principles for the sound management of third-party risk in the banking sector. It also discussed an analysis on the risks and benefits from banks’ reliance on third-party service providers.

Building on the comments received and its own analysis, the Committee will publish a final version of the principles by the end of the year.

Members also exchanged views on recent developments related to artificial intelligence and digital fraud. The Committee will continue to monitor developments in these areas.

The Committee also discussed how best to use technological innovation for its Pillar 3 disclosure framework. The disclosure framework enables market participants to access key information about a bank’s risk profile. Making these data more easily accessible by publishing them in a machine-readable format would provide an important public good. The Committee will consult on such a proposal by the end of the year.