Memorandum of Understanding signed by the Basel Committee on Banking Supervision and the IFRS Foundation
The Basel Committee on Banking Supervision (BCBS) and the IFRS Foundation have announced a new cooperation agreement to foster long-term financial stability, enhance market discipline and further develop sharing of information.
The agreement, in the form of a Memorandum of Understanding (MoU), formalises the mutual interaction and strengthens the existing relationship between the BCBS and the IFRS Foundation at the strategic and working level, focusing on the development of IFRS Standards, the interaction between IFRS Standards and the BCBS Framework and the manner in which they are applied in practice by financial institutions across the world.
The BCBS is the primary global standard setter for the prudential regulation of banks and provides a forum for regular cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability.
The mission of the IFRS Foundation, through its standard-setting body, the International Accounting Standards Board, is to develop a single set of high quality global accounting standards that bring transparency, accountability and efficiency to financial markets around the world, fostering trust, growth and long-term financial stability. IFRS Standards are required by over 125 countries globally.
The BCBS and the IFRS Foundation have a shared objective of serving the public interest. This MoU provides for continued strengthening of future cooperation between the BCBS and the IFRS Foundation in achieving common goals that will increase stability and transparency in the financial markets.
Michel Prada, Chair of the IFRS Foundation Trustees, said:
"There is a real desire for international organisations to be more joined up when developing standards for global finance. This agreement will help achieve that by strengthening and formalising the already high levels of cooperation between the IFRS Foundation and the Basel Committee."
Stefan Ingves, Chairman of the Basel Committee, said:
"I welcome this important initiative which formalises and strengthens the existing relationship between the IFRS Foundation and the Basel Committee. I look forward to continuing to build on our constructive co-operation in the interest of enhancing financial stability."
The MoU is available to download here.
Press enquiries:
Kirstina Reitan, Head of Communications, IFRS Foundation
Telephone: +44 (0)20 7246 6960
Email: kreitan@ifrs.org
Basel Committee on Banking Supervision
Telephone: +41 61 280 8188
Email: press@bis.org
About the IFRS Foundation
The IFRS Foundation is an independent, not-for-profit organisation, overseen by a Monitoring Board of public authorities. Its vision of a single set of global accounting standards is supported by G20 leaders and other international organisations with responsibility for the global financial system.
The mission of the IFRS Foundation is to develop IFRS Standards that bring transparency, accountability and efficiency to financial markets around the world, fostering trust, growth and long-term financial stability. The International Accounting Standards Board is the independent standard setting body of the IFRS Foundation, made up of experts from diverse professional and geographical backgrounds. IFRS Standards are required by over 125 countries globally.
For detailed information on the organisation's structure, the standard-setting process and the spread of IFRS Standards, visit www.ifrs.org.
IFRS, IAS, IFRS Foundation, IASB, IFRIC and SIC are trademarks of the IFRS Foundation in the UK and in other countries. Please contact the Foundation for details of where these trademarks are registered.
About the Basel Committee on Banking Supervision
The BCBS is the primary global standard setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability. BCBS members include organisations with direct banking supervisory authority and central banks.
For detailed information on the organisation's mandate, structure, and work programme, visit www.bis.org/bcbs.