The Basel Committee is consulting on a set of principles for enhancing corporate governance within banks. The 14 principles cover:
- the role of the board;
- the board's qualifications and experience;
- the importance of an independent risk management function;
- identification, monitoring and management of risks; and
- active board oversight of the remuneration system's design and operation, which should be consistent with FSB principles.
The principles also stress the importance of board and senior management having a clear knowledge and understanding of the bank's operational structure and risks. The document also contains principles for supervisors. Consultation closes on 15 June.