ABSTRACT
The Core Principles for Effective Banking Supervision have become the most important global standard for prudential regulation and supervision. The vast majority of the countries have endorsed the Core Principles and have declared their intention to implement them. As a first step to full implementation, there should be an assessment of the current situation of a country’s compliance with the Principles. Such an assessment should identify weaknesses in the existing system of supervision and regulation, and form a basis for remedial measures by government authorities and the bank supervisors. Such assessments are typically conducted by the countries themselves or by various outside parties. The Basle Committee on Banking Supervision has decided not to make assessments of its own due to a lack of necessary resources; however, the Committee is prepared to assist in other ways, inter alia by providing advice and training. Committee members may also individually participate in assessment missions conducted by other parties such as the IMF, the World Bank, regional development banks, regional supervisory organisations and private consultants. ‘Peer reviews’ are also possible, whereby supervisory experts from one country assess another country and vice versa [Basle Committee on Banking Supervision, Core Principles Methodology, October 1999].
