What is the Basel Committee

The Basel Committee on Banking Supervision (BCBS) is a team of banking regulatory bodies that provides the opportunity to discuss banking supervisory matter and cooperation between its member countries. The Basel Committee has members from different continents and regions from all across the globe, with the Committee’s Secretariat situated in Basel, Switzerland.

Basel Committee on Banking Supervision

The Basel Committee was established in 1974 by the central bank governors of the Group of Ten (G-10) countries. The G-10 members are: Belgium, Canada, France, Germany, Italy, Japan, Netherlands, Sweden, Switzerland, UK and USA. The main purpose of this committee is to enhance the quality of banking supervision around the world, with special focus upon improving the supervisory issues.

With the expansion of the Basel Committee, it has come to include a number of countries worldwide. Currently the Basel Committee members are: Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the UK and the USA. The Committee’s Secretariat is established with the Bank for International Settlements (BIS) in Basel, Switzerland.

One of the responsibilities of Basel Committee on Banking Supervision (BCBS) is to provide a guideline for different areas of banking internal operations such as capital adequacy, Core Principals for Effective Banking Supervision and the Concordant on cross-border banking supervision. The Committee also devises the standards and guidelines of best practice in banking supervision which are expected to be followed by the members of the BCBS. The Committee has four major divisions, these are:

  • The Standards of Implementation Group (SIG)
  • The Policy Development Group (PDG)
  • The Accounting Task Force (ATF)
  • The Basel Consultative Group (BCG)