Policy Papers

2024 Revised Basel Core Principles for Effective Banking Supervision

By Fabiana Melo, Katharine Seal, Valeria Salomao

August 2, 2024

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Fabiana Melo, Katharine Seal, and Valeria Salomao. "2024 Revised Basel Core Principles for Effective Banking Supervision", Policy Papers 2024, 037 (2024), accessed November 7, 2024, https://doi.org/10.5089/9798400286636.007

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Summary

The Basel Committee on Banking Supervision (BCBS) recently revised the Basel Core Principles for Effective Banking Supervision (BCP). The BCP are the de facto minimum standards for the sound prudential regulation and supervision of banks and banking systems and are universally applicable. This comprehensive update, the first since 2012, reflects the evolving financial landscape and incorporates feedback from a wide range of stakeholders including BCBS members, nonmember countries, the IMF, and the WBG. After extensive consultation, the revised BCP were approved by the BCBS in February 2024, and endorsed by the International Conference of Banking Supervisors in April 2024. The revised BCP document is a response to regulatory developments and structural changes within the banking industry over the last decade. It addresses the lessons learned over the last 10 years, including from the pandemic and the March 2023 banking turmoil; key findings from assessments under the Financial Sector Assessment Program (FSAP); and new challenges posed by ongoing structural transformations, notably digitalization and climate change. The revisions emphasize the importance of operational resilience, systemic risk management, and the adoption of a proportional approach to supervision, catering to the global diversity of banks and banking system.

Subject: Bank supervision, Basel Core Principles, Financial regulation and supervision, Financial Sector Assessment Program, Financial sector policy and analysis

Keywords: Bank supervision, Basel Core Principles, BCBS core principle, BCBS member, Case of the IMF, Core principle, Financial Sector Assessment Program, Global, Revised BCP document, WB staff

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