Frameworks For Early Supervisory Intervention

On 28 March 2018, the Basel Committee on Banking Supervision published Frameworks for early supervisory intervention, which presents a range-of-practice study on how supervisors around the world have adopted frameworks, processes, and tools to support early supervisory intervention. Case studies are also included to help illustrate some of the methods adopted by supervisors. Early supervisory intervention is defined as supervisors taking actions at an early stage to address unsafe and unsound practices or activities that could pose risks to banks or to the banking system. These early supervisory actions can range from supervisory measures that encompass moral suasion to more corrective sanctions, which are triggered when banks are deemed to be in danger of failing.