Note: This consultative document has been superseded by the final version of October 2006.
The Core Principles for Effective Banking Supervision,
developed by the Basel Committee on Banking Supervision (the Committee) in
cooperation with fellow supervisors, have become de facto the standard for
sound prudential regulation and supervision of banks. The Core Principles are
mainly intended to help countries assess the quality of their systems and to
provide input into their reform agenda. The vast majority of countries have
endorsed the Core Principles and have declared their intention to implement
them.
An assessment of the current situation of a country's compliance with the
Principles can be considered a useful tool in a country's implementation of an
effective system of banking supervision. In order to achieve objectivity and
comparability in the different country assessments of compliance with the
Principles, in 1999 the Committee developed the Core Principles Methodology,
which does not eliminate the need for both supervisors and assessors to use
their judgment in assessing compliance. This document is the revised version of
the 1999 Core Principles Methodology.
