Revised Core Principles for Effective Banking Supervision

The Basel Committee on Banking Supervision has revised the October 2006 Core Principles for effective banking supervisions.

The revised set of twenty-nine Core Principles has also been reorganised to foster their implementation through a more logical structure, highlighting the difference between what supervisors do and what they expect banks to do: Principles 1 to 13 address supervisory powers, responsibilities and functions, focusing on effective risk-based supervision, and the need for early intervention and timely supervisory actions. Principles 14 to 29 cover supervisory expectations of banks, emphasising the importance of good corporate governance and risk management, as well as compliance with supervisory standards.

Important enhancements have been introduced into the individual Core Principles, particularly in those areas that are necessary to strengthen supervisory practices and risk management. As a result, certain "additional criteria" have been upgraded to"essential criteria", while new assessment criteria were warranted in other instances. Close attention was given to addressing many of the significant risk management weaknesses and other vulnerabilities highlighted in thefinancial crisis.

The revised core principles document is available for download below:

Download PDF - Core Principles for Effective Banking Supervision