Core Principles for Effective Banking Supervision
In close collaboration with regulators in countries outside the G10, the Basel Committee on Banking Supervision published a set of core principles for effective banking supervision in September 1997. This magna carta of banking supervision contains 25 generally formulated, globally applicable recommendations for the essential elements of a viable workable supervisory system. The Core Principles are based on the realisation, acquired in the course of the nineties, that weak and inadequately regulated banking systems can be instrumental in causing serious financial crises, particularly in the emerging nations. Besides helping individual countries in their own self-assessment, they are primarily of use to international financial institutions such as the International Monetary Fund and the World Bank as a benchmark for assessment and technical support when implementing measures in the countries in question. Instructions for performing the examination process and detailed criteria for assessing adherence to the Core Principles are contained in Core Principles Methodology, published in October 1999.