The Basel Committee on Banking Supervision (Committee) approved an updated workplan to evaluate its post crisis reforms to include lessons learned from the COVID-19 pandemic. The Committee is currently consulting on a set of principles to enhance banks' operational resilience.

The Committee noted that the financial sector is on a more stable footing, thanks in part to the Basel III post-crisis reforms. The reforms helped to boost banks' capital and liquidity resources are greater than during the Great Financial Crisis of 2007-09, thus making them more resilient.

As part of this evaluation the Committee noted that it incorporate lessons learned from the COVID-19 crisis. The Committee will conduct a range of empirical analyses to evaluate:

• the extent to which its post-crisis reforms have achieved their objectives;
• the interactions among the Basel III reforms and other post-crisis reforms; and
• whether there are gaps in the regulatory framework or significant unintended effects.

A copy of the press release can be viewed here.

This post originally appeared on World Council's Advocate Blog.