On 30 April 2025, the Basel Committee on Banking Supervision (Basel Committee) revised its Principles for the Management of Credit Risk (Credit Risk Principles).

The Credit Risk Principles provide guidelines for banking supervisory authorities to evaluate banks’ credit risk management processes in four key areas: (i) establishing a suitable credit risk environment; (ii) operating under a sound credit-granting process; (iii) maintaining an appropriate credit administration, measurement and monitoring process; and (iv) ensuring adequate controls over credit risk.

The revision to the Credit Risk Principles follows a review that the Basel Committee conducted. Certain technical amendments to the Credit Risk Principles have been made to align them with the current Basel Framework and the latest guidelines issued by the Basel Committee. The revision is not intended to change the content of the principles or cover new topics.