about basel committee
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8/2/2019 About BASEL Committee
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About BASEL committee:
Provides a forum for Regular cooperation on banking supervisory
matters.
Its objective is to enhance understanding of key supervisory issues
and improve the quality of banking supervision worldwide.
By exchanging information on national supervisory issues,
approaches and techniques, with a view to promoting common
understanding.
To develop guidelines and supervisory standards in areas where they
are considered desirable
The Committee is best known for its international standards on
capital adequacy; the Core Principles for Effective Banking
Supervision; and the Concordat on cross-border banking supervision.
International Conference of Banking Supervisors (ICBS) which takes
place every two years.
The Committee's Secretariat is located at the Bank for International
Settlements in Basel, Switzerland
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The Committee's work is organised under four main sub-committees:
The Standards Implementation Group
The Policy Development Group
The Accounting Task Force
The Basel Consultative Group
The Standards Implementation Group(SIG) was originally
established to share information and promote consistency in
implementation of the Basel II Framework.
Currently the SIG has four subgroups or task forces that work on
specific implementation issues.
The Operational Risk Subgroup addresses issues related primarily to
banks' implementation of advanced measurement approaches foroperational risk.
The Task Force on Colleges brings forward the Basel Committee's
work on supervisory colleges by developing guidance that enhances
the effectiveness in the use and functioning of supervisory colleges
and assisting supervisors in implementing such guidance in practice.
The Task Force on Remuneration contributes to promote the
adoption of sound remuneration practices. Its main focus is on the
implementation of the relevant principles of the supplemental Pillar
2 guidance issued by the Committee in July 2009 which areconsistent with the Financial Stability Board's Principles for Sound
Compensation Practices.
The Standards Monitoring Procedures Task Force supports the
implementation of Basel Committee standards and guidelines by
developing tools and procedures that help promote greater
effectiveness and consistency in standards monitoring and
implementation.
The primary objective of the Policy Development Group (PDG) is to support
the Committee by identifying and reviewing emerging supervisory issues and,
where appropriate, proposing and developing policies that promote a soundbanking system and high supervisory standards.
The Risk Management and Modelling Group serves as the Committee's point of
contact with the industry on the latest advances in risk measurement and
management. It focuses on assessing the range of industry risk management
practices and the development of supervisory guidance to promote enhancedrisk management practices.
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The Research Task Force serves as a forum for research economists from
member institutions to exchange information and engage in research projects on
supervisory and financial stability issues. It also acts as a mechanism for
facilitating communication between economists at member institutions and in
the academic sector.
The Trading Book Group conducts a fundamental review of the trading book
capital framework. Part of the review is whether or not the distinction between
the banking and the trading book should be maintained, how trading activities
are defined and how risks in trading books (and possibly market risk more
generally) should be captured by regulatory capital. Furthermore, it addresses
implementation issues relating to the Revisions to the Basel II market risk framework.
The Working Group on Liquidity serves as a forum for information exchangeon national approaches to liquidity risk regulation and supervision.
The Definition of Capital Subgroup explores emerging trends in eligible capital
instruments in member jurisdictions. It currently is reviewing issues related to
the quality, consistency and transparency of capital with a particular focus onTier 1 capital.
Since the implementation of Basel II, national supervisors are monitoring
capital requirements to ensure that banks in their jurisdiction maintain a solidcapital base throughout the economic cycle. The Basel Committee has
established the Capital Monitoring Group that shares national experiences inmonitoring capital requirements.
Cross-border Bank Resolution Group: the CBRG is comparing the national
policies, legal frameworks and the allocation of responsibilities for theresolution of banks with significant cross-border operations.
The Accounting Task Force(ATF) works to help ensure that international
accounting and auditing standards and practices promote sound risk
management at banks, support market discipline through transparency, and
reinforce the safety and soundness of the banking system. To fulfil this mission,
the task force develops prudential reporting guidance and takes an active role inthe development of international accounting and auditing standards.
The Audit Subgroup, a working group of the Accounting Task Force, promotes
reliable financial information by exploring key audit issues from a bankingsupervision perspective. It focuses on responding to international audit
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standards-setting proposals, other issuances of the International Auditing and
Assurance Standards Board and the International Ethics Standards Board forAccountants, and audit quality issues.
The Basel Consultative Group(BCG) provides a forum for deepening the
Committee's engagement with supervisors around the world on banking
supervisory issues. It facilitates broad supervisory dialogue with non-member
countries on new Committee initiatives early in the process by gathering senior
representatives from various countries, international institutions and regionalgroups of banking supervisors that are not members of the Committee.
Coordination with other standard setters
Formal channels for coordinating with supervisors of non-bank financial
institutions include the Joint Forum, for which the Basel Committee Secretariat
provides the secretariat function, and the Coordination Group. The Joint Forum
was established in 1996 to address issues common to the banking, securities and
insurance sectors, including the regulation of financial conglomerates. The
Coordination Group is a senior group of supervisory standard setters comprisingthe Chairmen and Secretaries General of the Committee, the International
Organization of Securities Commissions (IOSCO) and the International
Association of Insurance Supervisors (IAIS), as well as the Joint Forum
Chairman and Secretariat. The Coordination Group meets twice annually to
exchange views on the priorities and key issues of interest to supervisory
standard setters. The position of chairman and the secretariat function for the
Coordination Group rotate among the member representatives of the threestandard setters every two years.
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"Basel III" is a comprehensive set of reform measures, developed by the Basel
Committee on Banking Supervision, to strengthen the regulation, supervisionand risk management of the banking sector. These measures aim to:
improve the banking sector's ability to absorb shocks arising fromfinancial and economic stress, whatever the source
improve risk management and governance strengthen banks' transparency and disclosures.
The reforms target:
bank-level, or microprudential, regulation, which will help raise the
resilience of individual banking institutions to periods of stress.
macroprudential, system wide risks that can build up across the banking
sector as well as the procyclical amplification of these risks over time.
These two approaches to supervision are complementary as greater resilience atthe individual bank level reduces the risk of system wide shocks.
The Basel III framework is summarized in a table which provides an overviewof the various measures taken by the Committee.
Basel III is part of the Committee's continuous effort to enhance the banking
regulatory framework. It builds on the International Convergence of CapitalMeasurement and Capital Standards document (Basel II).
COMPILATION OF DOCUMENTS THAT FORM THE GLOBAL
REGULATORY FRAMEWORK FOR CAPITAL AND
LIQUIDITY (BASEL II, BASEL 2.5 AND BASEL III)
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