Basel has published an update of its Core Principles for Effective Banking Supervision. Following a review of the 2006 Core Principles, it has decided to combine the Core Principles and the assessment methodology into one document. There are now 29 Core Principles, addressing:
- supervisory powers, responsibilities and functions (Principles 1-13); and
- supervisory expectations on banks (Principles 14-29).
The Principles focus on the risk-based approach to supervision, and governance and risk management within supervised firms. The new Principles also take account of recent concerns over supervisory intensity and resource, the need to apply a macro perspective to micro-supervision and the increased focus on crisis management. (Source: Basel Core Principles September 2012)