A sector in which corporate governance has been of central importance in recent years is the banking sector.  The international community continues to strive towards a better and more effective governance regime. Among recent governance developments in this sector are the following:

  • The Basel Committee on Banking Supervision has published its second progress report on Basel III implementation.  This report tracks the implementation of Basel II, Basel 2.5 and Basel III by Committee member countries.  It outlines the progress of individual countries in transforming the committee’s regulatory standards into national law or regulation, according to the internationally agreed timeframes.
  • The Basel Committee on Banking Supervision has also published a Basel III Regulatory consistency assessment programme, a timely consistent implementation of Basel III being key to raising the resilience of the banking system and in ensuring market confidence according to the Basel Committee.  The assessment programme will be conducted on three levels:

- Level 1: ensuring the timely adoption of Basel III;

- Level 2: ensuring regulatory consistency with Basel III; and

- Level 3: ensuring consistency of risk-weighted asset outcomes.

  • The Group of 30 (G30) has stated that further improvements in corporate governance of major financial services firms are crucial to securing financial stability.  The G30 is an international forum of public and private sector financial leaders.  The forum reports that although many financial services firms have drawn lessons from the 2008/2009 financial crisis and implemented substantial governance reforms, there is scope for further improvements.
  • The Bank for International Settlements (BIS) has published a working paper on systemic risk in global banking:  Supervisors and other agencies need more and better data to construct even rudimentary measures of risks in the international financial system.  Similarly, market participants need better information on aggregate positions and linkages to appropriately monitor and price risks.  Ongoing initiatives that will help close data gaps include the G20 data gaps initiative, which recommends the collection of consistent bank level data for joint analysis, and enhancements to existing sets of aggregate statistics, and enhancements to the BIS international banking statistics.