Tag Archives: Basel

The Basel Committee was established as the Committee on Banking Regulations and Supervisory Practices by the Central Bank Governors of the Group of Ten countries at the end of 1974 in the aftermath of serious disturbances in International Currency and Banking markets. The first meeting took place in February 1975 and meetings have been held regularly three or four times a year since. The Committee ’s members come from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Sweden, Switzerland, U. K. & U.S.A. The committee does not possess any formal transnational supervisory authority.

Basel frame work impact on the banks

In addition to the work on capital standards, particular supervisory questions which the Committee has addressed include the supervision of bank’s foreign exchange positions, the management of banks international lending (i.e. country risk ), the management of bank’s off-balance –sheet exposures, the prevention of criminal use of the banking system, the supervision of large exposures, risk management guidelines for derivatives and the management of interest rate risk .

Continue reading