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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:
September 3, 2009
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