TO: Banks

Federally Regulated Trust and Loan Companies

Subject: Releases from the Basel Committee on Banking Supervision

On September 16, 1999, the Basel Committee on Banking Supervision released a paper, Enhancing Corporate Governance for Banking Organisations. This paper forms part of the Basel Committee’s on-going effort to strengthen banks’ procedures for risk management and disclosure. The Basel Committee believes that through sound corporate governance, bank supervisors can have a collaborative working relationship with bank management, rather than an adversarial one.

At the same time, the Committee released an information piece, Performance of Models-Based Capital Charges for Market Risk July 1 – December 31, 1998.

Interested parties may obtain these papers from the BIS web site at www.bis.org or through the hot link to the BIS provided at OSFI’s web site at www.osfi-bsif.gc.ca. These papers are available in English only.

John R. Thompson

Deputy Superintendent