On 5 February 2025, the Basel Committee on Banking Supervision (Basel Committee) issued a public consultation on a limited update of the 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 certain areas including establishing a suitable credit risk environment and ensuring adequate controls over credit risk.

The limited update comprises of a set of technical amendments to align the Credit Risk Principles with the current Basel Framework and the latest guidelines issued by the Basel Committee. The proposed update does not aim to change the content of the existing principles or cover new topics.

A detailed comparison against the previous version of the Credit Risk Principles has also been published.

The deadline for comments on the consultation is 21 March 2025.