Basel Committee consults on revised principles for supervisory colleges: The Basel Committee is consulting, until 18 April, on an updated version of its good practice principles for supervisory colleges. The principles outline expectations on college objectives, governance, communication and information sharing. The updated version reflects better how colleges function in practice, introducing an expectation on the need to strike a balance between effectiveness of the college and the participation of host supervisors. It also acknowledges and tackles coordination issues between colleges and the new crisis management groups, and introduces a more specific discussion about the contexts in which macro-prudential considerations will be relevant to a college. (Source: Consultative Paper on Revised Good Practice Principles for Supervisory Colleges)
Basel Committee discusses banks' capital planning: The Basel Committee has issued a report on the fundamental elements of a bank's capital planning process. Capital planning processes are described as enabling management to make informed judgments about a bank's capital across a range of potential scenarios and outcomes. The report presents sounds practices that the Basel Committee has observed at some banks. The four fundamental elements the Basel Committee identifies are:
- internal control and governance;
- capital policy and risk capture;
- forward-looking view; and
- management framework for preserving capital.