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The Basel Committee on Banking Supervision (BCBS) is a committee of
banking supervisory authorities that was established in 1985. It provides a
forum for regular cooperation on banking supervisory matters. Its objective is
to enhance understanding of key supervisory issues and improve the quality
of banking supervision worldwide. It was established by the central bank
governors of the group of ten countries , Belgium, Canada, France, Great
Britain, Germany, Itly, Japan, Luxembourg, Neitherland, Sweden,
Switzerland, Spain, united states.
The Basel Committee, established by the central-bank Governors of the
Group of Ten countries at the end of 1974, meets regularly four times a
year. It has four main working groups which also meet regularly. Since
1988, this framework has been progressively introduced not only in
member countries but also in virtually all other countries with
internationally active banks. In June 1999, the Committee issued a
proposal for a revised Capital Adequacy Framework. In 1997 it developed
a set of " core principles for effective banking supervision", which
provides a comprehensive blueprint for an effective supervisory system.
To facilitate implementation and assessment, the Committee in October
1999 developed the " Core Principles Methodology". The Core Principles
and the Methodology were revised recently and released in October 2006.
Security and reliability

Minimal standards

Circulation and promotion
Standards Implementation Group(SIG)
Policy Development Group(PDG)
Accounting Task Force(ATF)
Basel Consultative Group(BCG)
 Operational Risk Subgroup
 Task Force on Colleges
 Task Force on Remuneration
 Standards Monitoring Procedures
  Task Force
POLICY DEVELOPMENT GROUP(PDG)

 Risk Management and Modelling Group
 Research Task Force

 Trading Book Group

 Working Group on Liquidity

 Capital Monitoring Group

 Cross-border Bank Resolution Group
ACCOUNTING TASK FORCE(ATF)
 The Accounting Task Force(ATF) works to help
 ensure that international accounting and
 auditing standards and practices promote
 sound risk management at banks, support
 market discipline through transparency, and
 reinforce the safety and soundness of the
 banking system.
The Basel Consultative Group(BCG) provides
 a forum for deepening the Committee's
 engagement with supervisors around the
 world on banking supervisory issues. It
 facilitates broad supervisory dialogue with
 non-member countries on new Committee
 initiatives early in the process by gathering
 senior      representatives   from    various
 countries, international institutions and
 regional groups of banking supervisors that
 are not members of the Committee.
principles for effective Banking supervisions

 Licensing and structure

 Prudential regulations and requirements

 Methods of ongoing banking supervision

 Information Requirements

 Formal powers of Supervisors

 Cross-border Banking
Pitfalls of Basel
 Limited differentiation of credit risk

 Static measure of default risk

 recognition of term-structure of credit risk

 Simplified calculation of potential future Scounterparty risk

 Lack of recognition of portfolio diversification effects
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Nimmo

  • 1.
  • 2.
  • 3. The Basel Committee on Banking Supervision (BCBS) is a committee of banking supervisory authorities that was established in 1985. It provides a forum for regular cooperation on banking supervisory matters. Its objective is to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide. It was established by the central bank governors of the group of ten countries , Belgium, Canada, France, Great Britain, Germany, Itly, Japan, Luxembourg, Neitherland, Sweden, Switzerland, Spain, united states.
  • 4. The Basel Committee, established by the central-bank Governors of the Group of Ten countries at the end of 1974, meets regularly four times a year. It has four main working groups which also meet regularly. Since 1988, this framework has been progressively introduced not only in member countries but also in virtually all other countries with internationally active banks. In June 1999, the Committee issued a proposal for a revised Capital Adequacy Framework. In 1997 it developed a set of " core principles for effective banking supervision", which provides a comprehensive blueprint for an effective supervisory system. To facilitate implementation and assessment, the Committee in October 1999 developed the " Core Principles Methodology". The Core Principles and the Methodology were revised recently and released in October 2006.
  • 5. Security and reliability Minimal standards Circulation and promotion
  • 6. Standards Implementation Group(SIG) Policy Development Group(PDG) Accounting Task Force(ATF) Basel Consultative Group(BCG)
  • 7.  Operational Risk Subgroup  Task Force on Colleges  Task Force on Remuneration  Standards Monitoring Procedures Task Force
  • 8. POLICY DEVELOPMENT GROUP(PDG)  Risk Management and Modelling Group  Research Task Force  Trading Book Group  Working Group on Liquidity  Capital Monitoring Group  Cross-border Bank Resolution Group
  • 9. ACCOUNTING TASK FORCE(ATF) The Accounting Task Force(ATF) works to help ensure that international accounting and auditing standards and practices promote sound risk management at banks, support market discipline through transparency, and reinforce the safety and soundness of the banking system.
  • 10. The Basel Consultative Group(BCG) provides a forum for deepening the Committee's engagement with supervisors around the world on banking supervisory issues. It facilitates broad supervisory dialogue with non-member countries on new Committee initiatives early in the process by gathering senior representatives from various countries, international institutions and regional groups of banking supervisors that are not members of the Committee.
  • 11.
  • 12. principles for effective Banking supervisions  Licensing and structure  Prudential regulations and requirements  Methods of ongoing banking supervision  Information Requirements  Formal powers of Supervisors  Cross-border Banking
  • 13. Pitfalls of Basel  Limited differentiation of credit risk  Static measure of default risk  recognition of term-structure of credit risk  Simplified calculation of potential future Scounterparty risk  Lack of recognition of portfolio diversification effects