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The Basel Committee on Banking Supervision, established by the central-bank Governors of the Group of Ten countries in late 1974, is a committee of central banks and bank supervisors and regulators from major industrialised countries (Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, United Kingdom and United States) that meets at the Bank for International Settlements (BIS) in Basel to discuss issues related to prudential banking supervision. Although the Basel Committee does not possess any formal supervisory authority or legal jurisdiction over its member countries, it formulates broad standards and guidelines and makes recommendations regarding best practices.
In 1988, the Basel Committee introduced a new framework that is often referred to as the Basel Capital Accord. The 1988 Accord set minimum risk-based capital requirements (8%) for internationally-active banks. Since 1988, this framework has been progressively introduced not only in member countries but also in nearly all other countries with active international banks. However, the significant transformation of the business of banking, financial markets, risk management practices and supervisory approaches that had taken place since 1988 motivated the Committee's plans to revise the 1988 Accord. In 1999, the Committee issued a proposal for a New Capital Adequacy Framework to replace the 1988 Accord. The proposal consisted of three pillars: minimum capital requirements set out to improve the rules of the 1988 Accord; a supervisory review of an institution’s internal capital assessment process and capital adequacy; and the use of disclosure to enhance market discipline to complement the supervisory effects. After extensive consultation with the banks, industry groups and outside regulators and supervisors, the revised framework was finalized in November 2005.
March 30, 2010 - The Basel Committee on Banking Supervision has issued a consultative document entitled Sound practices for backtesting counterparty credit risk models - Issued for comment by 31 May 2010.
January 9, 2010 - BIS released the following press release on its Web site: Group of Central Bank Governors and Heads of Supervision reinforces Basel Committee reform package
January 8, 2010 - The Joint Forum released the following report on its Web site: Review of the Differentiated Nature and Scope of Financial Regulation - Key Issues and Recommendations
December 17, 2009 - BIS released the following press release on its Web site: Consultative proposals to strengthen the resilience of the banking sector announced by the Basel Committee.
September 17, 2009 - The Basel Committee on Banking Supervision has issued a consultative document entitled Report and Recommendations of the Cross-border Bank Resolution Group. The report responds to the G20’s call for the Basel Committee to conduct further work on cross-border bank resolution. The Cross-border Bank Resolution Group of the Basel Committee on Banking Supervision developed ten Recommendations as a product of its stocktaking of legal and policy frameworks for cross-border crises resolutions and its follow-up work to identify the lessons learned from the financial crisis which began in August 2007.
Comments on the Report should be submitted by December 31, 2009 by e-mail to: baselcommittee@bis.org. Alternatively, comments may be sent by mail to the Secretariat of the Basel Committee on Banking Supervision, Bank for International Settlements, CH-4002 Basel, Switzerland.
September 6, 2009 - BIS released the following press release on its Web site: Comprehensive response to the global banking crisis.
July 13, 2009 - The BCBS posted the following press release on its Web Site: Basel II capital framework enhancements announced by the Basel Committee. The press release announced the BCBS endorsement of : i) changes to capital, disclosure and Pillar 2 requirements for securitization in a document entitled Enhancements to the Basel II framework , ii) new capital requirements for banks trading activities detailed in the document Revisions to the Basel II market risk framework - final version, and iii) the document Guidelines for computing capital for incremental risk in the trading book - final version, which elaborates on the standards for calculating a new incremental risk capital charge on trading book activities.
June 17, 2009 - The BCBS issued standards for sound liquidity risk management in a paper entitled Principles for Sound Liquidity Risk Management and Supervision.
May 20, 2009 - The Basel Committee on Banking Supervision (BCBS) released the final version of a guidance paper entitled: Principles for sound stress testing practices and supervision. The paper sets principles for the sound governance, design and implementation of stress testing programmes at banks. The principles address the weaknesses in banks’ stress tests that were highlighted by the financial crisis.
April 2009 - The BCBS released a paper providing guidance to banks and banking supervisors to strengthen valuation processes for financial instruments entitled: Supervisory guidance for assessing banks' financial instrument fair value practices - final paper
October 5, 2006 - BIS released the following press release on its Web site: Bank supervisors from 120 countries endorse updated international principles for effective banking supervision. The revised documents consist of the Core Principles for Effective Banking Supervision and Core Principles Methodology.
June 16, 2006 - BIS released the cross-country summary of the QIS-5 results on its Web site: QIS 5: Fifth Quantitative Impact Study
June 14, 2006 - BIS released the following press release on its Web site: Basel Committee issues guidance on sound credit risk assessment and valuation for loans
June 14, 2006 - BIS released the following press release on its Web site: Basel Committee issues guidance on the use of the fair value option for financial instruments by banks
November 18, 2005 - Implementation of the Advanced Internal Ratings Based Approach (AIRB) for Credit Risk under the New Basel Capital Framework
August 17, 2004 - Presentation on the domestic implementation of the simpler approaches available under the new Basel Framework
July 22, 2004 - BIS released the following document on its Web site: Principles for the Management and Supervision of Interest Rate Risk
November 2005 - The Bank for International Settlements' (BIS) Basel Committee on Banking Supervision releases International Convergence of Capital Measurement and Capital Standards: A Revised Framework Comprehensive Version
Quick links to BIS documents:
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