The Basel Committee on Banking Supervision, Bank for International Settlements, on Thursday of this week issued for public comment updated versions of its Core Principles for Effective Banking Supervision as well as the Core Principles Methodology.
A release from the BCBS notes that the Basel Core Principles have been used by countries as a benchmark for assessing the quality of their supervisory systems and for identifying future work needed to ensure sound supervisory practices. They have also been used by the International Monetary Fund (IMF) and the World Bank in the context of the Financial Sector Assessment Program.
Changes have occurred in banking regulation over the years, and experience has been gained with implementing the Core Principles in individual countries. The updates reflect these changes and experiences, and are intended to ensure their continued validity and usefulness.
Mr. Jaime Caruana, Chairman of the Basel Committee, says the updates are the result of a common endeavour between the BCBS and its supervisory colleagues from around the world, as well as the IMF and the World Bank. *”This initiative serves as an example of how engagement across a wide range of countries can really enhance the efficiency of our work and the quality of the outcome,”* he adds.
The deadline for comments on the revised Basel Core Principles and Methodology documents to be sent to the Basel Committee is 23 June, 2006.