On October 10, 2014, the Basel Committee launched a consultation on revised corporate governance principles for banks. The proposed revised principles aim to enhance the principles developed in 2010 which were developed in response to lessons learnt from the recent financial crisis. Although a peer review conducted by the Financial Stability Board earlier in 2014 found that both banks and regulators had made good progress in improving corporate governance in banks, the review found that more work could be done to establish effective risk governance frameworks. As a result, the Basel Committee has decided to update  its principles. The proposed revised principles seek to: (i) strengthen the guidance on risk governance; (ii) expand the guidance on the role of the board in overseeing implementation of effective management systems; (iii) emphasize the importance of the board’s collective competence; and (iv) provide guidance for bank supervisors on the evaluation system used by banks to select board members and senior management. Responses to the consultation are due by January 9, 2015.

The consultation paper is available at:

 http://www.bis.org/publ/bcbs294.pdf.