The Core Principles are a set of global supervisory standards, setting a crucial basis for governments and regulators to draw on when establishing or revising their own rules and regulations. Their revision, which reflects an extensive consultation process, marks a significant development in banking supervision.

The Core Principles have explicitly included three new topics: operational resilience, business model sustainability, and climate-related financial risks. These additions underscore a global consensus on the significance of these risks and the need for supervisors to take proactive measures.

Recognizing the importance of sound business strategies, the revised Core Principles also include the assessment of business model sustainability, aiming to foster banks' long-term viability. The update also addresses the systemic risks posed by climate change. Recognizing the urgency of climate-related threats, supervisors now have explicit mandates to assess and mitigate these risks in their supervisory practices.

By integrating these three new pillars of action into the supervisory toolkit, regulators aim to build a more resilient and sustainable banking system capable of navigating the challenges of the 21^st century.

Access the press release on the BIS’s website.