priyanka1987

New member
History of the Basel Committee and its Membership
The Basel Committee, established by the central-bank Governors of the Group of Ten countries at the end of 1974, meets regularly four times a year. It has four main working groups which also meet regularly.
The Committee's members come from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, United Kingdom and United States. Countries are represented by their central bank and also by the authority with formal responsibility for the prudential supervision of banking business where this is not the central bank. The present Chairman of the Committee is Mr Nout Wellink, President of the Netherlands Bank, who succeeded Mr Jaime Caruana on 1 July 2006.
The Committee does not possess any formal supranational supervisory authority, and its conclusions do not, and were never intended to, have legal force. Rather, it formulates broad supervisory standards and guidelines and recommends statements of best practice in the expectation that individual authorities will take steps to implement them through detailed arrangements - statutory or otherwise - which are best suited to their own national systems. In this way, the Committee encourages convergence towards common approaches and common standards without attempting detailed harmonisation of member countries' supervisory techniques.
The Committee reports to the central bank Governors of the Group of Ten countries and to the heads of supervisory authorities of these countries where the central bank does not have formal responsibility. It seeks their endorsement for its major initiatives. These decisions cover a very wide range of financial issues. One important objective of the Committee's work has been to close gaps in international supervisory coverage in pursuit of two basic principles: that no foreign banking establishment should escape supervision; and that supervision should be adequate. To achieve this, the Committee has issued a long series of documents since 1975.
In 1988, the Committee decided to introduce a capital measurement system commonly referred to as the Basel Capital Accord. This system provided for the implementation of a credit risk measurement framework with a minimum capital standard of 8% by end-1992. Since 1988, this framework has been progressively introduced not only in member countries but also in virtually all other countries with internationally active banks. In June 1999, the Committee issued a proposal for a revised Capital Adequacy Framework. The proposed capital framework consists of three pillars: minimum capital requirements, which seek to refine the standardised rules set forth in the 1988 Accord; supervisory review of an institution's internal assessment process and capital adequacy; and effective use of disclosure to strengthen market discipline as a complement to supervisory efforts. Following extensive interaction with banks, industry groups and supervisory authorities that are not members of the Committee, the revised framework was issued on 26 June 2004. This text serves as a basis for national rule-making and for banks to complete their preparations for the new framework's implementation.
Over the past few years, the Committee has moved more aggressively to promote sound supervisory standards worldwide. In close collaboration with many non-G10 supervisory authorities, the Committee in 1997 developed a set of "Core Principles for Effective Banking Supervision", which provides a comprehensive blueprint for an effective supervisory system. To facilitate implementation and assessment, the Committee in October 1999 developed the "Core Principles Methodology". The Core Principles and the Methodology were revised recently and released in October 2006.
In order to enable a wider group of countries to be associated with the work being pursued in Basel, the Committee has always encouraged contacts and cooperation between its members and other banking supervisory authorities. It circulates to supervisors throughout the world published and unpublished papers. In many cases, supervisory authorities in non-G10 countries have seen fit publicly to associate themselves with the Committee's initiatives. Contacts have been further strengthened by International Conferences of Banking Supervisors (ICBS) which take place every two years. The last ICBS was held in Mexico in the autumn of 2006.
The Committee's Secretariat is provided by the Bank for International Settlements in Basel. The fifteen person Secretariat is mainly staffed by professional supervisors on temporary secondment from member institutions. In addition to undertaking the secretarial work for the Committee and its many expert sub-committees, it stands ready to give advice to supervisory authorities in all countries.
 

priyanka1987

New member
About the Basel Committee
The Basel Committee on Banking Supervision provides a forum for regular cooperation on banking supervisory matters. Its objective is to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide. It seeks to do so by exchanging information on national supervisory issues, approaches and techniques, with a view to promoting common understanding. At times, the Committee uses this common understanding to develop guidelines and supervisory standards in areas where they are considered desirable. In this regard, the Committee is best known for its international standards on capital adequacy; the Core Principles for Effective Banking Supervision; and the Concordat on cross-border banking supervision.
The Committee's members come from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, the United Kingdom and the United States. Countries are represented by their central bank and also by the authority with formal responsibility for the prudential supervision of banking business where this is not the central bank. The present Chairman of the Committee is Mr Nout Wellink, President of the Netherlands Bank.
The Committee encourages contacts and cooperation among its members and other banking supervisory authorities. It circulates to supervisors throughout the world both published and unpublished papers providing guidance on banking supervisory matters. Contacts have been further strengthened by an International Conference of Banking Supervisors (ICBS) which takes place every two years.
The Committee's Secretariat is located at the Bank for International Settlements in Basel, Switzerland, and is staffed mainly by professional supervisors on temporary secondment from member institutions. In addition to undertaking the secretarial work for the Committee and its many expert sub-committees, it stands ready to give advice to supervisory authorities in all countries. Mr Stefan Walter is the Secretary General of the Basel Committee.
Main Expert Sub-Committees
As of October 2006, the Committee has reorganised its work under four main sub-committees (organisation chart):
· The Accord Implementation Group
· The Policy Development Group
· The Accounting Task Force
· The International Liaison Group
More information on each sub-committee is provided below.

The Accord Implementation Group (AIG) was established to share information and thereby promote consistency in implementation of Basel II. While the AIG provides a forum for discussing members' approaches to implementing Basel II, it is not intended to mandate uniformity of application of the Revised Framework. It is chaired by Mr José María Roldán, Director General of Banking Regulation at the Bank of Spain.
Currently the AIG has three subgroups that share information and discuss specific issues related to Basel II implementation. The Validation Subgroup (AIGV) explores issues related to the validation of systems used to generate the ratings and parameters that serve as inputs into the internal ratings-based approaches to credit risk. The AIGV is chaired by Mr Maarten Gelderman, Head of Quantitative Risk Management at the Netherlands Bank.
The Operational Risk Subgroup (AIGOR) addresses issues related primarily to banks' implementation of advanced measurement approaches for operational risk. Mr Kevin Bailey, Deputy Comptroller, Office of the Comptroller of the Currency, United States, chairs the group.
The Trading Book Subgroup (AIGTB) is co-chaired by Ms Norah Barger, Associate Director, Board of Governors of the Federal Reserve System, United States, and Mr Thomas McGowan, Assistant Director, Securities and Exchange Commission, United States. It addresses issues regarding the implementation of the recommendations in the Committee's July 2005 paper, The application of Basel II to trading activities and the treatment of double default effects. A current focus of this group is the development of principles for the treatment of default risk in the trading book.
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The Policy Development Group (PDG) replaces the Committee's former Capital Task Force. Its primary objective is to support the Committee by identifying and reviewing emerging supervisory issues and, where appropriate, proposing and developing policies that promote a sound banking system and high supervisory standards. The group is chaired by Mr Stefan Walter, Secretary General of the Basel Committee.
Five working groups report to the PDG: the Risk Management and Modelling Group (RMMG), the Research Task Force (RTF), recently established working groups on Liquidity and on the Definition of Capital, and a Basel II Capital Monitoring Group.
The RMMG serves as the Committee's point of contact with the industry on the latest advances in risk measurement and management, and is chaired by Mr Klaas Knot, Director of Supervisory Policy at the Netherlands Bank
The Research Task Force serves as a forum for research economists from member institutions to exchange information and engage in research projects on supervisory and financial stability issues. It also acts as a mechanism for facilitating communication between economists at member institutions and in the academic sector. It is co-chaired by Mr Myron Kwast, Senior Associate Director of the Division of Research and Statistics at the Board of Governors of the Federal Reserve System, United States, and Mr Peter Praet, Executive Director at the National Bank of Belgium and member of the Management Committee of the Banking, Finance and Insurance Commission, Belgium.
The Liquidity Group will serve as a forum for information exchange on national approaches to liquidity risk regulation and supervision. This work is intended to provide the Committee with a stock-taking of existing regulatory and supervisory standards for liquidity risk management. The group is co-chaired by Mr Nigel Jenkinson, Executive Director for Financial Stability at the Bank of England, and Mr Gerhard Stahl, Head of the Risk Modelling Group at the German Federal Financial Supervisory Authority.
The Definition of Capital Group will explore emerging trends in eligible capital instruments in member jurisdictions. The group is co-chaired by Mr Yoshinori Nakata, Director of the Financial Systems and Bank Examination Department at the Bank of Japan, and Mr Paul Sharma, Head of the Prudential Standards Department at the Financial Services Authority, United Kingdom.
Lastly, in the course of implementation of Basel II, national supervisors are monitoring capital requirements to ensure that banks in their jurisdiction maintain a solid capital base throughout the economic cycle. The Basel Committee has established a Basel II Capital Monitoring Group that will from time to time share national experiences in monitoring capital requirements. This group is chaired by Mr Gerhard Hofmann, Head of the Banking and Financial Supervision Department at the Deutsche Bundesbank.
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The Accounting Task Force (ATF) works to ensure that international accounting and auditing standards and practices promote sound risk management at financial institutions, support market discipline through transparency, and reinforce the safety and soundness of the banking system. To fulfil this mission, the task force develops prudential reporting guidance and takes an active role in the development of international accounting and auditing standards. Ms Sylvie Mathérat, Director, Commission Bancaire, France, chairs the ATF.
Three working groups report to the ATF: the Conceptual Framework Issues Subgroup, the Financial Instruments Practices Subgroup, and the Audit Subgroup. The Conceptual Framework Issues Subgroup monitors and responds to the conceptual accounting framework project of the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board in the United States. The Subgroup is co-chaired by Mr Jerry Edwards, Senior Advisor on Accounting and Auditing Policy, Basel Committee ATF, and Mr Patrick Amis, Head of Accounting Affairs, Commission Bancaire, France.
The Financial Instruments Practices Subgroup examines implementation of international accounting standards related to financial instruments, and the links between accounting practices in this area and prudential supervision. The Subgroup is chaired by Mr Arthur Angulo, Senior Vice President in the Banking Supervision Group of the Federal Reserve Bank of New York, United States.
The Audit Subgroup promotes reliable financial information by exploring key audit issues from a banking supervision perspective. It focuses on responding to international audit standards-setting proposals, other issuances of the International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants, and audit quality issues. The Subgroup is chaired by Mr Marc Pickeur, Advisor for Supervisory Policy at the Banking, Finance and Insurance Commission, Belgium.
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The newly established International Liaison Group (ILG) replaces the former Core Principles Liaison Group – which had focused considerably on the initial implementation and later revision of the 1997 Core Principles for Effective Banking Supervision – and provides a forum for deepening the Committee's engagement with supervisors around the world on a broader range of issues. It gathers senior representatives from eight Committee member countries (France, Germany, Italy, Japan, the Netherlands, Spain, the United Kingdom and the United States), 16 supervisory authorities that are not members of the Committee (Argentina, Australia, Brazil, Chile, China, the Czech Republic, Hong Kong, India, Korea, Mexico, Poland, Russia, Saudi Arabia, Singapore, South Africa, and the West African Monetary Union), the European Commission, the International Monetary Fund, the World Bank, and the Financial Stability Institute. The ILG is chaired by Mr Giovanni Carosio, Deputy General Director, Bank of Italy.
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Coordination with other standard setters
Formal channels for coordinating with supervisors of non-bank financial institutions include the Joint Forum, for which the Basel Committee Secretariat provides the secretariat function, and the Coordination Group. The Joint Forum was established in 1996 to address issues common to the banking, securities and insurance sectors, including the regulation of financial conglomerates. The Coordination Group is a senior group of supervisory standard setters comprising the Chairmen and Secretaries General of the Committee, the International Organization of Securities Commissions (IOSCO) and the International Association of Insurance Supervisors (IAIS), as well as the Joint Forum Chairman and Secretariat. The Coordination Group meets twice annually to exchange views on the priorities and key issues of interest to supervisory standard setters. The position of chairman and the secretariat function for the Coordination Group rotate among the member representatives of the three standard setters every two years.
 

priyanka1987

New member
Basel Committee on Banking Supervision
The Basel Committee on Banking Supervision is an institution created by the central bank Governors of the Group of Ten nations . It was created in 1974 and meets regularly four times a year.
Its membership is now composed of senior representatives of bank supervisory authorities and central banks from the G-10 countries (Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom and the United States), and representatives from Luxembourg and Spain. It usually meets at the Bank for International Settlements in Basel, where its 12 member permanent Secretariat is located.
The Basel Committee formulates broad supervisory standards and guidelines and recommends statements of best practice in banking supervision (see bank regulation or Basel II, for example) in the expectation that member authorities and other nation's authorities will take steps to implement them through their own national systems, whether in statutory form or otherwise.
The purpose of the committee is to encourage convergence toward common approaches and standards. Dieter Kerwer reports that "the BCBS is not a classical multilateral organization. It has no founding treaty, and it does not issue binding regulation. Rather, its main function is to act as an informal forum to find policy solutions and to promulgate standards." (pp 619) [1]
The present Chairman of the Committee is Nout Wellink, President of the Netherlands Bank, who succeeded Jaime Caruana of the Bank of Spain on 1 July 2006.
 

maverick_ronnie

Par 100 posts (V.I.P)
Scope of Application

4.1.1 RBI agrees with the Committee’s view that the focus of the New Accord may be primarily on internationally active banks, which would be followed by adherence by all significant banks after a certain period of time. The basic philosophy of the New Accord being to achieve competitive equality and financial stability and the Committee’s pronouncement that the underlying principles are generally suitable to all types of banks around the globe, the New Accord, like the 1988 Accord, should be applied, generally to all banks. However, RBI shares the views of Mr. Laurence H. Meyer, Member of the Board of Governors of the Federal Reserve System that ‘it is not at all obvious that the proposed standardised approach fits the needs of smaller banking organization engaged primarily in traditional banking activities… but I question whether the added implementation burdens are cost-effective for traditional banking organizations, especially since neither the current nor the proposed capital frameworks yet address what is perhaps the most critical risk factor for smaller banks – geographic and sectoral concentrations of credit risk’1.

4.1.2 It is, therefore, suggested that a simplified standardised approach, based on internal rating systems of banks may be evolved and applied to banks, which are not internationally active. Under this approach, standardised risk weights in the range of 0% to 150% on the basis of internal ratings of banks, could be assigned, subject to mapping of such ratings with the benchmark Probability of Default (PD) estimated by the supervisor on the basis of pooled data from select banks. As a precursor, however, internal rating systems of banks need to be substantially upgraded and strengthened, keeping in view the best practices and the standards prescribed by the Basel Committee for IRB approach.

4.1.3 Recognising, however, the fact that even the simplified approach is likely to be more extensive and complex than the 1988 Accord, the New Accord may be applied, in phases, at the discretion of national supervisors to banks on the basis of the complexity, scale of operation, etc. Each national supervisor may, however, be required to publicly announce a schedule for implementation of the New Accord and the status of implementation may be evaluated under the proposed framework for exchange of information amongst member countries.

RBI, therefore, agrees with the view that the New Accord should initially be applied to all internationally active banks. Further, a simplified standardised approach, as suggested above, may be evolved for other banks and that national supervisors should have discretion to implement the New Accord, in a phased manner.

4.1.4 As the main objective of the New Accord is to ensure competitive equality and providing a reasonable degree of consistency in application, it is necessary that all supervisors, across the world should have a common definition of internationally active and significant banks. Basel Committee may, therefore, define what constitute internationally active and significant banks.

In this regard, RBI is of the view that all banks with cross-border business exceeding 15% of their total business may be defined as internationally active banks. Significant banks may be defined as those banks with complex structures and whose market share in the total assets of the domestic banking system exceeds 1%. In the event of no consensus evolving on a uniform definition, national supervisors should have discretion to define what constitutes an internationally active and a significant bank. Each national supervisor may, however, be required to announce the criteria adopted for defining internationally active and significant banks in its jurisdiction through the Basel Committee. The criteria, when endorsed, should be accepted by supervisors in other jurisdictions and by international agencies.
 

maverick_ronnie

Par 100 posts (V.I.P)
listen dude if u wann some data then u should help others also
so dont join for seek for project bt u shd help others
 

aditip

New member
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yshah84

Par 100 posts (V.I.P)
hi guys u all have done a gr8 job...also pls find if u have report on WTO & its impact on Indian Industry...pls mail me yshah84 @ gmail.com
 
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