Basel Committee Issues Guidance On Core Principles For Effective Banking Supervision

In April 2022, the Basel Committee on Banking Supervision (the Basel Committee) began a review of "the core principles for effective banking supervision" (Core Principles or CP). Last month, the Basel Committee published a Consultative Document on the Core Principles following its review.

The Basel Committee is the primary global standard-setter for the prudential regulation of banks and provides a forum for regular cooperation on banking supervisory matters. Its 45 members comprise central banks and bank supervisors from 28 jurisdictions. The Core Principles are an important component of the Basel Committee's global standards, aimed at ensuring sound prudential regulation and supervision of banks worldwide and are intended to remain a "living" standard, evolving over time in response to global financial developments, emerging risks, and changes in the regulatory landscape. The current review and update includes a consideration of supervisory and regulatory