Basel Committee on Banking Supervision

BCBS headquarters.

The Basel Committee on Banking Supervision (BCBS)^[1] is a committee of banking supervisory authorities that was established by the central bank governors of the Group of Ten countries in 1975.^[2] 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. The Committee frames guidelines and standards in different areas - some of the better known among them are the international standards on capital adequacy, the Core Principles for Effective Banking Supervision and the Concordat on cross-border banking supervision.^[3] The Committee's Secretariat is located at the Bank for International Settlements (BIS) in Basel, Switzerland. However, the BIS and the Basel Committee remain two distinct entities.^[4]

Goals

The purpose of BCBS is to encourage convergence toward common approaches and standards. The Committee is not a classical multilateral organization, in part because it has no founding treaty. BCBS does not issue binding regulation; rather, it functions as an informal forum in which policy solutions and standards are developed.^[5]

The Basel Committee formulates broad supervisory standards and guidelines and recommends statements of best practice in banking supervision (see bank regulation or "Basel III Accord", for example) in the expectation that member authorities and other nations' authorities will take steps to implement them through their own national systems.

Organization

The Basel committee along with its sister organizations, the International Organization of Securities Commissions and International Association of Insurance Supervisors together make up the Joint Forum of international financial regulators.

The present^[6] Chairman of the Committee is Stefan Ingves, Governor of the central bank of Sweden (Sveriges Riksbank).^[7] William Coen is the current Secretary General of the Basel Committee.^[8]

Member countries

Committee members come from Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The Committee's Secretariat is located at the Bank for International Settlements (BIS) in Basel, Switzerland. However, the BIS and the Basel Committee remain two distinct entities.^[9]

Groups

The Committee is sub-divided into groups, each of which have specific task forces to work on specific issues:

The Standards Implementation Group (SIG)
- Operational Risk Subgroup - addresses issues related to Advanced Measurement Approach for Operational Risk
- Task Force on Colleges - develops guidance on the Basel Committee's work on supervisory colleges
- Task Force on Remuneration - promotes the adoption of sound remuneration practices
- Standards Monitoring Procedures Task Force - develops procedures to achieve greater effectiveness and consistency in standards monitoring and implementation
The Policy Development Group (PDG)
- Risk Management and Modelling Group - point of contact with the industry on the latest advances in risk measurement and management
- Research Task Force - facilitates economists from member institutions to discuss research on financial stability in consultation with the academic sector
- Trading Book Group - reviews how risks in the trading book should be captured by regulatory capital
- Working Group on Liquidity - works on global standards for liquidity risk management and regulation
- Definition of Capital Subgroup - reviews eligible capital instruments
- Capital Monitoring Group - co-ordinates the expertise of national supervisor in monitoring capital requirements
- Cross-border Bank Resolution Group - compares the national policies, legal frameworks and the allocation of responsibilities for the resolution of banks with significant cross-border operations
The Accounting Task Force (ATF) - ensures that accounting and auditing standards help promote sound risk management thereby maintaining the safety and soundness of the banking system
- Audit subgroup - explores key audit issues and co-ordinates with other bodies to promote standards
The Basel Consultative Group (BCG) - facilitates engagement between banking supervisors including dialogue with non-member countries

Standards

The Committee published its definition of a politically exposed person (PEP) as those "entrusted with prominent public functions, including heads of state or of government" in 2001.^[10] just after the Wolfsberg Group had published theirs in their first meeting in 2000. The FATF addressed the definition of a PEP in their 2003 recommendations.

References

↑ Basel Committee on Banking Supervision
↑ See the "History of the Basel Committee and its Membership" in http://www.bis.org/bcbs/history.pdf
↑ About:Basel Committee on Banking Supervision
↑ Marrison, Chris (2002). The Fundamentals of Risk Measurement. New York, New York: McGraw Hill. pp. 340–342. ISBN 0-07-138627-0.
↑ Kerwer, Dieter. "Rules that many use: standards and global regulation," Governance (US). Vol. 18, Issue 4, p. 616. October 2005
↑ "Chairmen of the Basel Committee". www.bis.org. 2013-04-22. Retrieved 2016-03-11.
↑ Fact sheet - Basel Committee on Banking Supervision Bank for International Settlements website
↑ "Press release: William Coen appointed as the next Secretary General of the Basel Committee". www.bis.org. 2014-04-23. Retrieved 2016-03-11.
↑ Marrison, Chris (2002). The Fundamentals of Risk Measurement. New York, New York: McGraw Hill. pp. 340–342. ISBN 0-07-138627-0.
↑ David Pallister and Owen Bowcott (16 July 2002). "Banks to shut doors on Saudi royal cash". The Guardian. Retrieved 12 February 2015.

External links

Basel Committee on Banking Supervision at the Bank for International Settlements website
http://bis2information.org: Practical articles, on BIS2 and risk modelling, submitted by professionals to help create an industry standard.
BCBS: A History of the Early Years, 1974-1997 by Charles Goodhart (2011), reviewed by The Oxonian Review

Central banks

Global

Global	Bank for International Settlements Basel Committee on Banking Supervision Financial Stability Board

By continent

Africa	Bank of Central African States Central Bank of West African States Bank of Algeria National Bank of Angola Bank of Botswana Bank of the Republic of Burundi Bank of Cape Verde Central Bank of the Comoros Central Bank of the Congo Central Bank of Djibouti Central Bank of Egypt Bank of Eritrea National Bank of Ethiopia Central Bank of The Gambia Bank of Ghana Central Bank of the Republic of Guinea Central Bank of Kenya Central Bank of Lesotho Central Bank of Liberia Central Bank of Libya Central Bank of Madagascar Reserve Bank of Malawi Central Bank of Mauritania Bank of Mauritius Bank Al-Maghrib (Morocco) Bank of Mozambique Bank of Namibia Central Bank of Nigeria National Bank of Rwanda Central Bank of São Tomé and Príncipe Central Bank of Seychelles Bank of Sierra Leone Central Bank of Somalia Bank of Somaliland South African Reserve Bank Bank of South Sudan Central Bank of Sudan Central Bank of Swaziland Bank of Tanzania Central Bank of Tunisia Bank of Uganda Bank of Zambia Reserve Bank of Zimbabwe

Americas	Central Bank of Argentina Central Bank of Aruba Central Bank of The Bahamas Central Bank of Barbados Bermuda Monetary Authority Central Bank of Brazil Bank of Canada Central Bank of Chile Bank of the Republic (Colombia) Central Bank of Cuba Central Bank of Curaçao and Sint Maarten Eastern Caribbean Central Bank Cayman Islands Monetary Authority Central Bank of Ecuador Bank of Guatemala Bank of the Republic of Haiti Central Bank of Honduras Bank of Jamaica Bank of Mexico Central Bank of Nicaragua Central Reserve Bank of Peru Central Bank of Suriname Central Bank of Trinidad and Tobago Federal Reserve System (United States) Central Bank of the Uruguay Central Bank of Venezuela

Asia	Da Afghanistan Bank Central Bank of Bahrain Bangladesh Bank Royal Monetary Authority of Bhutan Brunei Currency and Monetary Board Autoriti Monetari Brunei Darussalam National Bank of Cambodia People's Bank of China Hong Kong Monetary Authority Reserve Bank of India Bank Indonesia Central Bank of the Islamic Republic of Iran Central Bank of Iraq Bank of Israel Bank of Japan Central Bank of Jordan National Bank of Kazakhstan National Bank of the Kyrgyz Republic Bank of Korea Central Bank of the Democratic People's Republic of Korea Central Bank of Kuwait Banque du Liban Monetary Authority of Macao Bank Negara Malaysia Maldives Monetary Authority Bank of Mongolia Central Bank of Myanmar Nepal Rastra Bank Central Bank of Oman State Bank of Pakistan Palestine Monetary Authority Bangko Sentral ng Pilipinas Qatar Central Bank Saudi Arabian Monetary Agency Monetary Authority of Singapore Central Bank of Sri Lanka Central Bank of Syria Central Bank of the Republic of China (Taiwan) Bank of Thailand Central Bank of Turkmenistan Central Bank of the United Arab Emirates Central Bank of Uzbekistan State Bank of Vietnam Central Bank of Yemen

Europe	European Central Bank (Eurosystem) National Bank of the Republic of Abkhazia Bank of Albania Central Bank of Armenia National Bank of Austria Central Bank of Azerbaijan National Bank of the Republic of Belarus National Bank of Belgium Central Bank of Bosnia and Herzegovina Bulgarian National Bank Croatian National Bank Central Bank of Cyprus Czech National Bank Danmarks Nationalbank (Denmark) Deutsche Bundesbank (Germany) Bank of England Bank of Estonia Bank of Finland Banque de France National Bank of Georgia Bank of Greece Hungarian National Bank Central Bank of Iceland Central Bank of Ireland Banca d'Italia Central Bank of Kosovo Bank of Latvia Bank of Lithuania Central Bank of Luxembourg National Bank of the Republic of Macedonia Central Bank of Malta National Bank of Moldova Central Bank of Montenegro De Nederlandsche Bank Norges Bank Central Bank of the Turkish Republic of Northern Cyprus National Bank of Poland Banco de Portugal National Bank of Romania Central Bank of Russia National Bank of Serbia National Bank of Slovakia Bank of Slovenia Gosbank (Soviet Union) Bank of Spain Swedish National Bank Swiss National Bank Central Bank of the Republic of Turkey National Bank of Ukraine

Oceania	Reserve Bank of Australia Reserve Bank of Fiji Reserve Bank of New Zealand Bank of Papua New Guinea Central Bank of Samoa Central Bank of Solomon Islands National Reserve Bank of Tonga Reserve Bank of Vanuatu

Policies and implementation

Policies	Capital requirement Contractionary monetary policy Expansionary monetary policy Basel II Basel III Basel 4

Implementation	Capital control Discount rate Interest rates Money creation Open market operation Sovereign wealth fund

Bretton Woods system

International Monetary Fund World Bank Group International Bank for Reconstruction and Development International Centre for Settlement of Investment Disputes International Development Association International Finance Corporation Multilateral Investment Guarantee Agency

Lists

List of central banks Central banks and currencies of Africa Central banks and currencies of Asia-Pacific Central banks and currencies of the Caribbean Central banks and currencies of Europe Central banks and currencies of Central America and South America

Names in italics indicate non-sovereign (dependent) territories, former countries, or states with limited recognition

This article is issued from Wikipedia - version of the 10/25/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.