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The Basel Committee on Banking Supervision, established by the central-bank Governors of the Group of Ten countries in late 1974, is a committee of central banks and bank supervisors and regulators from major industrialised countries (Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, United Kingdom and United States) that meets at the Bank for International Settlements (BIS) in Basel to discuss issues related to prudential banking supervision. Although the Basel Committee does not possess any formal supervisory authority or legal jurisdiction over its member countries, it formulates broad standards and guidelines and makes recommendations regarding best practices.
In 1988, the Basel Committee introduced a new framework that is often referred to as the Basel Capital Accord. The 1988 Accord set minimum risk-based capital requirements (8%) for internationally-active banks. Since 1988, this framework has been progressively introduced not only in member countries but also in nearly all other countries with active international banks. However, the significant transformation of the business of banking, financial markets, risk management practices and supervisory approaches that had taken place since 1988 motivated the Committee's plans to revise the 1988 Accord. In 1999, the Committee issued a proposal for a New Capital Adequacy Framework to replace the 1988 Accord. A consultative document was issued in January 2001, focusing on the "three pillars" of minimum capital requirements; a supervisory review process; and market discipline. The new Accord, once finalized, will replace the current 1988 Basel Accord.
November 30, 2005 - The Bank for International Settlements (BIS) Basel Committee on Banking Supervision is seeking public comment on a draft proposal concerning sound credit risk assessment and controls. Sound Credit Risk Assessment and Valuation for Loans addresses how common data and processes may be used for credit risk assessment, accounting and capital adequacy purposes. It also highlights provisioning concepts that are intended to be consistent with prudential and accounting frameworks. The document is available on the BIS Web site at http://www.bis.org/press/p051128.htm. OSFI encourages financial institutions to review this important document. Please note the comment period ends February 28, 2006. Should you have any questions, please contact Karen Stothers, Director, Accounting Policy Division at OSFI: (416) 973-0744 or karen.stothers@osfi-bsif.gc.ca.
November 18, 2005 - Implementation of the Advanced Internal Ratings Based Approach (AIRB) for Credit Risk under the New Basel Capital Framework
July 19, 2005 - The Bank for International Settlements (BIS) Basel Committee on Banking Supervision has issued a final paper concerning capital treatment for certain trading activities and double default effects. The Application of Basel II to Trading Activities and the Treatment of Double Default Effect, builds on improvements to the risk sensitivity of capital rules in a manner that is consistent with the Basel II Framework. The document and the associated press release is available on the BIS website: http://www.bis.org/publ/bcbs116.htm . Should you have any questions you may contact Brad Shinn, Capital Specialist, Capital Division at OSFI: (613) 998-9793 or brad.shinn@osfi-bsif.gc.ca .
April 19, 2005 - The Bank for International Settlements (BIS) Basel Committee on Banking Supervision is seeking public comment on a draft proposal concerning capital treatment for certain trading activities and double default effects. The Application of Basel II to Trading Activities and the Treatment of Double Default Effects builds on improvements to the risk sensitivity of capital rules in a manner that is consistent with the Basel II Framework. The document is available on the BIS website: http://www.bis.org/press/p050411.htm. OSFI encourages financial institutions to review this important document. Please note the comment period ends May 27, 2005. Should you have any questions or wish to provide comments you may contact Brad Shinn, Capital Specialist, Capital Division at OSFI: (613) 998-9793 or brad.shinn@osfi-bsif.gc.ca.
August 17, 2004 - Presentation on the domestic implementation of the simpler approaches available under the new Basel Framework
July 22, 2004 - BIS released the following document on its Web site: Principles for the Management and Supervision of Interest Rate Risk
July 14, 2004 - Remarks by Nicholas Le Pan, Superintendent, Office of the Superintendent of Financial Institutions, Canada; Chairman of the Basel Accord Implementation Group; and Vice Chairman of the Basel Committee on Banking Supervision, 6 July 2004, Hotel Ritz – Madrid, Spain.
June 28, 2004 - BIS released the following press release on its Web site: G-10 central bank governors and heads of supervision endorse publication of Basel II
June 24, 2004 - Remarks by Nicholas Le Pan, Superintendent, Office of the Superintendent of Financial Institutions, to the Fourth National Conference on Financial Regulation, Fairmont Royal York Hotel, Toronto, Ontario, May 14, 2004
January 30, 2004 - II Regional Conference Public Sector – Private Sector; The New Basel Accord - Work Progress: The Use of External Credit Assessment Institutions (ECAI) Policy Options - Remarks by Julie Dickson, Assistant Superintendent, Regulation Sector, OSFI - January 30, 2004, Washington
March 10, 2003 - BIS issued a news release regarding the Basel Committee on Banking Supervision: Nick Le Pan was nominated to serve in the newly established position of Vice Chairman of the Committee. (BIS news release).
Quick links to BIS documents:
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