The Basel Committee on Banking Supervision (BCBS) has issued a consultative document on revised good practice principles for supervisory colleges. The principles were updated since their first publication in October 2010 and the main proposed changes now include:
- Principle 1 (college objectives) – places greater emphasis on collaboration and information-sharing on an ongoing basis;
- Principle 2 (college structures) – provides greater clarity on the expectation to strike a balance between core college effectiveness and host involvement;
- Principle 3 (information sharing) – includes the expectation that home and host supervisors will put in place appropriate mechanisms and sufficient resources for effective and timely information exchange;
- Principle 6 (interaction with the institution) – encourages home and host supervisors to agree on the types of feedback provided to banks and ensure consistency in how such feedback is provided;
- Principle 7 (crisis preparedness) – differentiates between banks that have established crisis management groups (CMG) and banks that do not; and
- alignment across the principles in terms of how macroprudential information is shared and utilised.
Comments on the proposals are requested by 18 April 2014.
View Revised good practice principles for supervisory colleges, 23 January 2014