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12 Key Standards and Self Assessments-Code 10

10. Core Principles for Effective Banking Supervision
(Basel Committee)

Description | Standard | Self-Assessment PDF icon

As evidenced by recent financial crises, weaknesses in the banking system of a country can threaten financial stability both within that country and internationally. In order to strengthen the banking system, the Basel Committee on Banking Supervision, after extensive consultations, developed a set of 25 core principles for banking supervision. They are considered essential for any supervisory system to be effective.

The principles cover:

  • Preconditions for effective banking supervision
  • Licensing process and approval for changes in structure
  • Arrangements for ongoing banking supervision
  • Formal powers of supervisors
  • Cross-border banking
Last Updated: 12/1/2010 8:45 AM