Descriptions
The Core Principles for Effective Banking Supervision are the de facto minimum standards for the sound prudential regulation and supervision of banks and banking systems. They are universally applicable and accommodate a range of banking systems and broad spectrum of banks. The Core Principles are used by the International Monetary Fund (IMF) and World Bank as part of the Financial Sector Assessment Programme (FSAP) to evaluate the effectiveness of countries’ banking supervisory systems and practices. The Basel Committee on Banking Supervision revised the Core Principles in April 2024.
The revised standard reflects changes based on the recent developments and lessons learned. These include strengthening macroprudential supervision; promoting operational resilience; reinforcing corporate governance and risk management practices; and addressing new and emerging risks, including the digitalisation of finance and climate-related financial risks. Monika Spudic, a Member of the Secretariat of the Basel Committee on Banking Supervision, will go into the details of these changes, particularly from a risk management and supervision perspective. Tarun Singh, Chief General Manager of the Reserve Bank of India, will provide the RBI’s perspective on implementation issues.
