[ronnierules]

B. The Basel Committee’s Electronic Banking Group: -

• The Basel Committee on Banking Supervision has taken the lead in this area through the creation of its Electronic Banking Group (EBG) in late 1999 – a group whose members represent 17 Central Banks and Bank Supervisory Agencies.

• The major focus of the EBG’s work has been to develop risk management guidance for Internet banking that will guide bankers and promote effective and consistent bank supervision around the world.

• The EBG has identified fourteen Risk Management Principles for Electronic Banking to promote sound risk management of e-banking. These principles are intended to help banking institutions expand their existing oversight policies and processes to cover their e-banking activities.

C. E-Finance Oversight: -

• The EBG has dedicated considerable time and effort to communicating supervisory expectations and guidance for home country supervisors to oversee cross-border Internet banking activity conducted by their local institutions.

• In February of this year, the Financial Stability Forum’s Contact Group on E-Finance held its first formal meeting. This group was formed to promote enhanced information-sharing among the various international sector-based working groups dealing with e-finance supervisory issues – e-banking, e-trading, retail payments systems, e-commerce, and so on.