The Basel Committee has released a Consultative Document which proposes the introduction of global controls on banks' "large exposures" for the first time. Currently, banks apply national rules (which are often derived from the Basel Committee's own Core Principles for Effective Banking Supervision), and the current Capital Requirements Directive sets large exposures rules for European banks which are often supplemented at local level by national rules and guidance. However, the Basel Committee's view is that its revised risk-based capital framework (i.e. Basel III) should be supplemented by a simple large exposures framework that would act as a backstop to protect banks from losses caused by the sudden default of a certain counterparty or group of connected counterparties (or indeed by another bank with which it is systemically connected). In addition, the Basel Committee makes further proposals to address the risks posed by "shadow banks" in relation to large exposures, as highlighted by the Financial Stability Board in its earlier Recommendations for strengthening the oversight and regulation of the shadow banking industry. Comments on the Consultative Document are requested by 28 June 2013. For further information on the Basel Committee's proposals, please read our Feature piece on this topic in this Edition of the SCM Briefing.