On 7 July 2022, the Basel Committee on Banking Supervision (Basel Committee) issued high-level considerations on proportionality that are intended to provide practical support to supervisory authorities seeking to implement proportionality into their domestic regulatory and supervisory frameworks.

The high-level considerations seek to support the decision-making process of proportionality in a broad variety of jurisdictions, in a way that would not undermine financial stability and/or the safety of financial institutions. The Basel Committee has also published accompanying technical annexes that offer illustrative elements that authorities may wish to consider as they address the specific policy challenges related to proportionality in their jurisdiction. These considerations and the technical annexes build upon the Basel Committee’s work on proportionality, domestic experiences from across the world, international discussions and academic work, and the broad exchange of views across the supervisory community.

The high-level considerations are voluntary and do not modify the Core Principles for Effective Banking Supervision, the Basel Framework or any of the Basel Committee’s existing standards, guidelines or sound practices.