Revised principles for supervisory colleges published by the Basel Committee
26 June 2014
The Basel Committee on Banking Supervision has today issued revised Principles for effective supervisory colleges. The revisions reflect the experience of Committee members in applying the original principles, published in 2010, together with emerging good practice in the role and operation of colleges. They draw on consultations with home and host supervisors, as well as internationally active banks.
The financial crisis highlighted the important role played by supervisory colleges in the effective supervision of international banking groups. The principles aim to promote and strengthen international cooperation and supervision of internationally active banks by providing guidelines to support the operation of supervisory colleges. They supplement broader guidance issued by the Basel Committee on cross-border cooperation and information-sharing.
Key revisions include:
- Greater emphasis on ongoing collaboration and information-sharing, as well as the expectation that home and host supervisors will put in place appropriate mechanisms and sufficient resources for effective and timely information exchange;
- Differentiation between colleges and crisis management groups (CMGs) for banks that are subject to both structures, eg systemically important banks, and guidance on possible communication and coordination between the college and the CMG on crisis preparedness; and
- Alignment across the principles on how macroprudential information is shared and used.
Stefan Ingves, Chairman of the Basel Committee on Banking Supervision and Governor of Sveriges Riksbank, said "Banks that operate on a cross-border basis present unique risks and supervisory challenges. The Basel Committee's revised principles for effective colleges aim to help supervisors address those challenges by promoting continued improvements in the way supervisors communicate, cooperate and share information with each other."
A consultative version of this paper was released for public comment in January 2014. The Basel Committee wishes to thank all those who contributed time and effort to express their views during the consultation process.