The Basel Committee on Banking Supervision has published a set of proposals that would revise the prudential treatment of banks' equity investment in funds. In reviewing the existing standards, the objective of the Committee was to develop an appropriately risk-sensitive and consistently applied Risk-Based Capital Regime. The existing standard would benefit from further clarity in some areas. In addition, it does not require banks to reflect a funds leverage when determining capital requirements associated with their investments in a fund, even though leverage is an important risk driver. The Committee believes the Revised Standard more appropriately reflect the risk of a fund's underlying investments and its leverage. The Revised Standard will also help address risk associated with bank's interactions with shadow banking entities. The work of the Basel Committee therefore contributes to the broader effort by the Financial Stability Board to strengthen the oversize and regulation of shadow banking. Feedback on the proposals are invited by 4th October 2013.