BCBS consults on core principles for banking supervision

BCBS is consulting on revisions to its Core principles for effective banking supervision (Core Principles).

In its April 2022 review, BCBS sought to reflect supervisory and regulatory developments, structural changes in the banking system, and lessons learn from Financial Sector Assessment Programs (FSAPs) since the last substantive update to the Core Principles in 2012.

The proposed amendments include:

  • Readability improvements:
    • Significant streamlining of the introductory sections;
    • New “Explanation of terms” sections;
    • New annex resource for supervisory authorities listing latest BCBS standards, guidelines and sound practices.
  • Amendments to principles related to:
    • Financial risks:
    • Operational resilience;
    • Systemic risk and macroprudential supervision:
    • Climate and digitalisation;
    • Non-bank financial intermediation; and
    • Risk management practices; and
  • Additional strengthening recognising increased supervisory expectations, including upgrading several existing additional criteria to essential criteria.

The consultation closes on 6 October 2023.

Laura Wiles