Basel Process

This refers to the way in which the BIS promotes international cooperation among monetary authorities and financial supervisory officials. By offering a forum for discussion among central banks and other financial authorities, and by hosting and supporting international groups, the BIS, through the Basel Process, plays a key role in helping to strengthen the stability and resilience of the global financial system.

The outcomes of the Basel Process are visible to the public in the form of committee reports that analyse specific topics and, as regards the work of the standard-setting committees, internationally agreed standards. International agreement is the precondition for globally consistent standards. 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 BIS hosts and supports a set of international groups - six committees and three associations - engaged in standard setting and the pursuit of financial stability. Co-location at the BIS facilitates communication and collaboration among these groups, as well as their interaction with central bank Governors and other senior officials in the context of the BIS's regular meetings programme. The limited size of these groups is conducive to flexibility and openness in the exchange of information, thereby facilitating coordination and preventing overlaps and gaps in their work programmes. The BIS also supports the work of these committees and associations with its expertise in economic research and statistics and its practical experience in banking.

These groups have their own respective governance arrangements and reporting lines, and their agendas are guided by various sets of central banks and supervisory authorities. The hosted groups are as follows:

  • The Basel Committee on Banking Supervision (BCBS): the global standard setter for the prudential regulation of banks that 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.
  • The Committee on the Global Financial System (CGFS): monitors and analyses the broad issues relating to financial markets and systems.
  • The Committee on Payments and Market Infrastructures (CPMI): analyses and sets standards for payment, clearing and settlement infrastructures.
  • The Markets Committee: examines the functioning of financial markets.
  • The Central Bank Governance Forum: comprises the Central Bank Governance Network, which facilitates the exchange of information on institutional arrangements, and the Central Bank Governance Group, which discusses issues related to the design and operation of central banks.
  • The Irving Fisher Committee on Central Bank Statistics (IFC): addresses statistical issues of concern to central banks, including those relating to economic, monetary and financial stability;
  • The Financial Stability Board (FSB): an association including finance ministries, central banks and other financial authorities in 25 countries that coordinates the work of national authorities and international standard setters and develops policies to enhance financial stability.
  • The International Association of Deposit Insurers (IADI): sets global standards for deposit insurance systems and promotes cooperation on deposit insurance and bank resolution arrangements.
  • The International Association of Insurance Supervisors (IAIS): sets standards for the insurance sector to promote globally consistent supervision.

The Bank's own Financial Stability Institute (FSI) facilitates the dissemination of the standard-setting bodies' work to central banks and financial sector supervisory and regulatory agencies through its extensive programme of meetings, seminars and online tutorials.