Policy development and implementation review
Updated 30 December 2016
The Committee's work is largely organised around groups, working groups and task forces. Any member organisation can join these groups to participate in the policy development process.
- Groups report directly to the Committee and are composed of senior staff from the Committee's member organisations.
- These groups are supported by working groups, comprising technical experts from member central banks and supervisory agencies.
- Task forces provide specific and expert assistance within a determined time frame where needed.
- Quantitative impact studies help calibrate standards and provide a tool for monitoring their impact.
The Committee's Secretariat, hosted and supported by the BIS, contributes to the work of the Committee, the Chair and the groups around which the Committee organises its work. It is staffed mainly by professional supervisors on temporary secondment from member institutions. The Secretariat also participates in seminars organised by the FSI and regional supervisory groups or other member organisations.
As part of the policy development process, the Committee consults widely on its activities. For example, it discusses its policy proposals with non-member authorities through the Basel Consultative Group. It also seeks input from other relevant stakeholders via written comments and by meeting with interested parties. Public comments on policy proposals are posted on the Committee's website.
The ultimate decision-making body is the Committee, where decisions are taken by consensus. The Committee is accountable to the Group of Governors and Heads of Supervision (GHOS) and seeks its endorsement for major decisions. Since the Committee does not possess any formal supranational authority, its decisions do not have legal force. The Committee, however, expects its members to implement standards in a full, timely and consistent manner.
Policy decisions by the Basel Committee are published on its website mainly in the form of:
- Standards, which establish minimum requirements for member jurisdictions
- Guidelines, which elaborate standards in areas important for the prudential regulation and supervision of banks
- Sound practices, which describe observed practices with a view to promoting common understanding and improving supervisory or banking practices
The Committee expects full implementation of its standards by its member jurisdictions and their internationally active banks. It therefore aims to monitor the implementation of these standards locally to ensure their timely, consistent and effective implementation, and to contribute to a level playing field among internationally active banks.
To facilitate this process, the Committee has adopted a comprehensive Regulatory Consistency Assessment Programme (RCAP) that complements the Committee's work on developing prudential standards. The RCAP consists of two distinct but interlinked modules covering the Basel capital, liquidity and leverage standards, and requirements relating to systemically important banks (SIBs):
- Monitoring adoption of the Basel standards
- Consistency assessments on a jurisdictional and a thematic basis
The RCAP includes a methodology describing the complete assessment programme and a questionnaire that member jurisdictions need to complete ahead of the assessment and update regularly. Both the methodology and the questionnaire help regulators, supervisors and other financial stability authorities to evaluate progress with implementation of the Basel III framework in their jurisdiction and identify areas for improvement.
Cooperation and support
The Committee also cooperates with other standard-setting bodies and international financial institutions to achieve effective supervision and appropriate information-sharing across industries and jurisdictions.
- Cooperating on financial stability and banking supervision: The Committee works with a range of bodies that are also hosted by the Bank for International Settlements, including the Financial Stability Board (FSB), the Committee on Payments and Market Infrastructures (CPMI), the International Association of Insurance Supervisors (IAIS) and the International Association of Deposit Insurers (IADI). The Committee also works with other standard-setting and related bodies outside Basel, such as the Financial Action Task Force (FATF) and the International Organization of Securities Commissions (IOSCO).
- Collaborating with international financial institutions: The Basel Committee works closely with the International Monetary Fund (IMF) and the World Bank, the world's two largest public lenders.
- Working with accounting and audit regulators and standard setters: The Committee is a member of and observer in institutions responsible for accounting and audit standard-setting and regulation, including the International Financial Reporting Standards Foundation (IFRS Foundation), the International Federation of Accountants (IFAC) and the International Forum of Independent Audit Regulators (IFIAR).
- Engaging with non-members: The Committee encourages cooperation between its members and other banking supervisory authorities. As such, the Basel Consultative Group (BCG) - previously known as the International Liaison Group (ILG) - was established by the Committee as a forum for deepening its engagement with non-member authorities, international institutions and regional groups of banking supervisors. The Committee further engages with non-members through the biennial International Conference of Banking Supervisors, as well as the Financial Stability Institute (FSI).