The Basel Committee on Banking Supervision today issued a consultative document updating its core principles for effective banking supervision—a universally applicable set of global standards for the sound prudential regulation and supervision of banks. The principles were originally published in 1997 and were last updated in 2012. The BCBS began an effort last year to review and update the principles, taking into consideration supervisory and regulatory developments since the 2012 update, the effects of recent structural trends on banks and the banking system, and lessons learned in implementing the 2012 updates to the principles.
The BCBS is proposing changes to both the structure and content of the principles. Proposed amendments have been informed by several thematic topics reflecting regulatory and supervisory developments in financial risks; operational resilience; systemic risk and macroprudential aspects of supervision; new risks, including climate-related financial risks and the digitalization of finance; nonbank financial intermediation; and risk management practices. Comments on the document are due Oct. 6.