23 January 2014

Consultative paper on revised good practice principles for supervisory colleges issued by the Basel Committee

The key changes include the following:

• Principle 1 now places greater emphasis on collaboration and information-sharing on an ongoing basis.
• Principle 2 provides greater clarity on the expectation to strike a balance between core college effectiveness and host involvement.
• Principle 3 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 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 differentiates between banks that have established crisis management groups (CMGs), eg systemically important banks, and banks that do not have a CMG. For the former, guidance is provided on possible communication and coordination between the college and CMG on crisis preparedness.

Alignment across the principles in terms of how macroprudential information is shared and utilised.

The original Good practice principles on supervisory colleges were published in October 2010, and included a commitment to review the principles to take stock of any key lessons learned from their use. This consultative document updates the principles following a review of practical challenges in their implementation and possible areas of additional best practices. The perspectives of home and host supervisors, as well as internationally active banks, were taken into account during this process.

The Committee welcomes comments on all aspects of this consultative document. Comments should be uploaded by 18 April, 2014. 

Press release

Consultation

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