02 August 2017

BIS: FSI Insights on policy implementation series launched; first papers focus on proportionality, cyber-risk

The Financial Stability Institute (FSI) launched a new publication series, FSI Insights on policy implementation, to contribute to international discussions on a range of policy issues and implementation challenges faced by financial sector authorities.

Fernando Restoy, FSI Chairman, said: "The intention of our new FSI Insights series is to provide information and analysis based on experiences in different jurisdictions on practical regulatory and supervisory issues." 

Jaime Caruana, General Manager of the Bank for International Settlements (BIS), said, "I welcome this new publication which contributes to BIS efforts to promote financial stability through dissemination of sound policies and practices." 

The first two papers launched today focus on proportionality and on cyber-risk:

• The paper on proportionality explores the issue of how best to tailor regulatory requirements for different types of banks by comparing the approaches followed in six jurisdictions. It shows the range of approaches in terms of criteria and the thresholds used to differentiate banks, and also in terms of the regulatory standards that are subject to a proportional implementation. The paper notes that implementation of the proportionality strategy should respect prudential objectives and consider implications for the competitive environment. 
• The paper on cyber-risk explores regulatory and supervisory initiatives in some leading jurisdictions. While there may be different views on the need to specifically regulate cyber-risk or how prescriptive these regulations should be, the supervisory approaches to assessing banks' cyber-risk vulnerability and resilience seem to be converging towards a "threat-informed" or "intelligence-led" framework. The paper also offers some high-level policy considerations for banking supervisory authorities contemplating or planning to introduce or enhance cyber-risk regulation and supervision for banks.

Press release

Proportionality in banking regulation: a cross-country comparison

Regulatory approaches to enhance banks' cyber-security frameworks

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