About the Basel Process
The Basel Process refers to the way in which the BIS promotes international cooperation among monetary authorities and financial supervisory officials. The BIS is a forum for discussion and a platform for cooperation among central banks* and other financial authorities in the pursuit of monetary and financial stability.
This international cooperation is known as the Basel Process. It revolves around two main axes:
- regular high-level meetings of senior monetary and financial officials
- the BIS's support for and collaboration with international groups pursuing financial stability.
Fostering global financial stability
The outcomes of the Basel Process are visible to the public in the form of committee reports analysing specific topics and internationally agreed standards. International agreement is the precondition for globally consistent standards produced by the standard-setting committees. But it does not substitute for national legislation. In order to become binding, the agreements reached in Basel have to be approved and implemented at the national level, following due regulatory and legislative processes in each individual jurisdiction.
The Financial Stability Institute assists central banks and financial regulatory and supervisory authorities worldwide in strengthening their financial systems by supporting the implementation of global regulatory standards and sound supervisory practices. It does so through policy work, knowledge-sharing activities and capacity-building.
Meetings
The BIS fosters discussion and facilitates collaboration among financial and monetary officials by organising and hosting bimonthly and other meetings of officials from central banks and supervisory authorities.* The Bank also regularly organises informal discussions among public and private sector representatives that focus on their shared interests in promoting a sound and well functioning international financial system.
* The access of the Central Bank of the Russian Federation to all BIS services, meetings and other BIS activities has been suspended.
Bimonthly meetings
Governors and other senior officials of BIS member central banks hold bimonthly meetings, usually in Basel, to discuss current developments and the outlook for the world economy and financial markets. They also exchange views and experiences on issues of interest to central banks.
Other meetings of Governors
The Group of Central Bank Governors and Heads of Supervision (GHOS) is a high-level forum responsible for international collaboration on banking supervision. Chaired by Tiff Macklem, Governor of the Bank of Canada, the GHOS meets periodically to decide on global banking regulations and oversee the work of the Basel Committee on Banking Supervision.
The Global Economy Meeting (GEM) comprises the Governors of 30 BIS member central banks in major advanced and emerging market economies that account for about four fifths of global GDP. The Governors of another 22 central banks attend the GEM as observers.
Chaired by Christine Lagarde, President of the European Central Bank, the GEM has two main roles:
- monitoring and assessing developments, risks and opportunities in the world economy and the global financial system
- providing guidance to three Basel-based central bank committees: the Committee on the Global Financial System, the BIS Committee on Payments and Market Infrastructures and the Markets Committee.
The GEM's economic discussions focus on current macroeconomic and financial developments in major advanced and emerging market economies.
GEM members: central bank Governors of Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, the Netherlands, Poland, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Thailand, Türkiye and the United Kingdom, and the President of the ECB, the Chair of the Board of Governors of the Federal Reserve System and the President of the Federal Reserve Bank of New York.
GEM observers: central bank Governors of Algeria, Austria, Chile, Colombia, the Czech Republic, Denmark, Finland, Greece, Hungary, Ireland, Israel, Kuwait, Luxembourg, Morocco, New Zealand, Norway, Peru, the Philippines, Portugal, Romania, the United Arab Emirates and Vietnam.
The Economic Consultative Committee (ECC) is a 19-member group that supports the work of the GEM. Also led by the GEM Chair and comprising all Governors participating in the BIS Board meeting and the BIS General Manager, the ECC conducts analyses and prepares proposals for the GEM's consideration.
In addition, all Board members make recommendations to the GEM on the composition and organisation of the CGFS, the CPMI and the Markets Committee and the appointment of their Chairs.
The All Governors' Meeting comprises the Governors of the 63 BIS member central banks and is chaired by Fabio Panetta, Chair of the BIS Board. It convenes to discuss selected topics of general interest to its members.
Two other groups – the Central Bank Governance Group, which also meets during the bimonthly meetings, and the Irving Fisher Committee on Central Bank Statistics – have a broader membership than the GEM, and hence, by agreement with the GEM and the BIS Board, the All Governors' Meeting is responsible for overseeing their work.
During the bimonthly meetings, Governors of central banks in major emerging market economies and small open economies gather to discuss themes of special relevance to their economies.
The central bank Governors of major emerging market economies meet three times a year to discuss issues of importance to their economies. Regular meetings are also held for the Governors of central banks in small open economies.
For senior central bank officials, the Bank organises various meetings to which other financial authorities, and occasionally the private financial sector and the academic community, are invited to contribute. These meetings include:
- annual meetings of the working parties on monetary policy, held in Basel but also hosted at a regional level by central banks in Asia, central and eastern Europe, and Latin America
- the meeting of Deputy Governors of emerging market economies
- high-level meetings organised by the Financial Stability Institute for Governors and Deputy Governors and heads of supervisory authorities.
About committees and associations
As part of our commitment to the Basel Process, we host and support a number of international institutions engaged in the pursuit of financial stability. Several of these groups set international standards in the expectation that individual national authorities will implement them.
BIS committees
The following committees located at the BIS support central banks and other jurisdictional authorities responsible for financial stability by providing background analysis and policy recommendations. Each is supported by a BIS secretariat, which prepares the committee meetings, background papers and reports and publishes the group's work. The committees have their own respective governance arrangements and reporting lines, and their agendas are guided by various groups of central banks and supervisory authorities.
Develops global regulatory standards for banks and seeks to strengthen micro- and macroprudential supervision.
Monitors and analyses issues relating to financial markets and systems.
The Committee on Payments and Market Infrastructures (CPMI) is an international standard setter that promotes, monitors and makes recommendations about the safety and efficiency of payment, clearing, settlement and related arrangements, thereby supporting financial stability and the wider economy. The CPMI also serves as a forum for central bank cooperation in related oversight, policy and operational matters, including the provision of central bank services.
Monitors developments in financial markets and their implications for central bank operations.
Examines issues related to the design and operation of central banks.
Addresses statistical issues relating to economic, monetary and financial stability.
Associations
The following associations involved in international cooperation in the area of financial stability also have their secretariats at the BIS, but have their own separate legal identity and governance structure and report to their members.
Coordinates the work of national authorities and international standard setters in developing and promoting the implementation of effective regulatory, supervisory and other financial sector policies in the interest of global financial stability.
Sets global standards for deposit insurance systems and promotes cooperation on deposit insurance and bank resolution arrangements.
Sets global standards for the insurance sector to promote effective and globally consistent supervision for the benefit and protection of policyholders and to contribute to global financial stability.