BANKING SUPERVISION: BASEL COMMITTEE

October 12, 2010 at 4:00 pm | Posted in Economics, Financial, Globalization, Research | Leave a comment

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Basel Committee on Banking Supervision

Basel Committee issues final paper on supervisory colleges

Press, Service (press@bis.org)

Publications, Service (Publications@bis.org)

Tue 10/12/10

The Basel Committee on Banking Supervision today issued the final version of its paper Good Practice Principles on Supervisory Colleges.

Supervisory colleges play a central role in supporting the supervision of international banking groups. While they are not a substitute for effective national supervision, the principles aim to strengthen international cooperation and supervision of internationally active banks by promoting the adoption of established good practices for operating supervisory colleges. Among other things, the eight principles outline expectations that:

· acknowledge a college might have multiple or variable sub-structures based on the characteristics of the banking groups under consideration as well as the particular needs of home and host supervisors;

· emphasise the importance of leadership and governance by home supervisors in designing and coordinating the operation of colleges so as to support the effective supervision of international banking groups;

· provide guidance on the types of information to exchange, subject to legal, confidentiality and market sensitivity considerations, and the range of communication channels available for effective information sharing;

· promote specific areas of collaborative work among supervisors, as appropriate, at various levels of a college to facilitate effective consolidated supervision; and

· take into account the latest developments and policy-making work in response to the financial crisis. For example, colleges should form one of the building blocks for crisis management planning. They should also facilitate the process of identifying and disseminating information relevant to macroprudential analysis.

Mr Nout Wellink, Chairman of the Basel Committee and President of the Netherlands Bank, noted that “the financial crisis has underscored the challenges to home and host supervisors in the consolidated supervision of international banks. Besides strengthening supervisory cooperation and coordination at the bank-specific level, the implementation of these principles will further foster the increasingly important function of supervisory colleges in promoting financial stability at the macroprudential level.”

A consultative version of this paper was published in March 2010. The Committee wishes to thank those who had taken the time and effort to express their views.

About the Basel Committee

The Basel Committee on Banking Supervision provides a forum for regular cooperation on banking supervisory matters. It seeks to promote and strengthen supervisory and risk management practices globally. The Committee comprises central bank and supervisory authority representatives from Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.

The Committee’s Secretariat is based at the Bank for International Settlements in Basel, Switzerland.

Communications
Bank for International Settlements

E-mail: press@bis.org

Website: www.bis.org

Phone: +41 61 280 8188

Bank for International Settlements (BIS)

Basel Committee on Banking Supervision

Basel Committee issues final paper on supervisory colleges

Press, Service (press@bis.org)

Publications, Service (Publications@bis.org)

www.bis.org

Tue 10/12/10

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