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 About BASEL committee:

  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.

  By exchanging information on national supervisory issues,

approaches and techniques, with a view to promoting common

understanding.

  To develop guidelines and supervisory standards in areas where they

are considered desirable

  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.

  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

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The Committee's work is organised under four main sub-committees:

  The Standards Implementation Group 

  The Policy Development Group 

  The Accounting Task Force 

  The Basel Consultative Group 

  The Standards Implementation Group(SIG) was originally

established to share information and promote consistency in

implementation of the Basel II Framework.

  Currently the SIG has four subgroups or task forces that work on

specific implementation issues.

  The Operational Risk Subgroup addresses issues related primarily to

banks' implementation of advanced measurement approaches foroperational risk.

  The Task Force on Colleges brings forward the Basel Committee's

work on supervisory colleges by developing guidance that enhances

the effectiveness in the use and functioning of supervisory colleges

and assisting supervisors in implementing such guidance in practice.

  The Task Force on Remuneration contributes to promote the

adoption of sound remuneration practices. Its main focus is on the

implementation of the relevant principles of the supplemental Pillar

2 guidance issued by the Committee in July 2009 which areconsistent with the Financial Stability Board's Principles for Sound

Compensation Practices.

  The Standards Monitoring Procedures Task Force supports the

implementation of Basel Committee standards and guidelines by

developing tools and procedures that help promote greater

effectiveness and consistency in standards monitoring and

implementation. 

The primary objective of the Policy Development Group (PDG) is to support

the Committee by identifying and reviewing emerging supervisory issues and,

where appropriate, proposing and developing policies that promote a soundbanking system and high supervisory standards.

The Risk Management and Modelling Group serves as the Committee's point of 

contact with the industry on the latest advances in risk measurement and

management. It focuses on assessing the range of industry risk management

practices and the development of supervisory guidance to promote enhancedrisk management practices.

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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.

The Trading Book Group conducts a fundamental review of the trading book 

capital framework. Part of the review is whether or not the distinction between

the banking and the trading book should be maintained, how trading activities

are defined and how risks in trading books (and possibly market risk more

generally) should be captured by regulatory capital. Furthermore, it addresses

implementation issues relating to the Revisions to the Basel II market risk framework.

The Working Group on Liquidity serves as a forum for information exchangeon national approaches to liquidity risk regulation and supervision.

The Definition of Capital Subgroup explores emerging trends in eligible capital

instruments in member jurisdictions. It currently is reviewing issues related to

the quality, consistency and transparency of capital with a particular focus onTier 1 capital.

Since the implementation of Basel II, national supervisors are monitoring

capital requirements to ensure that banks in their jurisdiction maintain a solidcapital base throughout the economic cycle. The Basel Committee has

established the Capital Monitoring Group that shares national experiences inmonitoring capital requirements.

Cross-border Bank Resolution Group: the CBRG is comparing the national

policies, legal frameworks and the allocation of responsibilities for theresolution of banks with significant cross-border operations.

The Accounting Task Force(ATF) works to help ensure that international

accounting and auditing standards and practices promote sound risk 

management at banks, 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 inthe development of international accounting and auditing standards.

The Audit Subgroup, a working group of the Accounting Task Force, promotes

reliable financial information by exploring key audit issues from a bankingsupervision perspective. It focuses on responding to international audit

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standards-setting proposals, other issuances of the International Auditing and

Assurance Standards Board and the International Ethics Standards Board forAccountants, and audit quality issues.

The Basel Consultative Group(BCG) provides a forum for deepening the

Committee's engagement with supervisors around the world on banking

supervisory issues. It facilitates broad supervisory dialogue with non-member

countries on new Committee initiatives early in the process by gathering senior

representatives from various countries, international institutions and regionalgroups of banking supervisors that are not members of the Committee.

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 comprisingthe 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 threestandard setters every two years.

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"Basel III" is a comprehensive set of reform measures, developed by the Basel

Committee on Banking Supervision, to strengthen the regulation, supervisionand risk management of the banking sector. These measures aim to:

 improve the banking sector's ability to absorb shocks arising fromfinancial and economic stress, whatever the source

  improve risk management and governance  strengthen banks' transparency and disclosures.

The reforms target:

  bank-level, or microprudential, regulation, which will help raise the

resilience of individual banking institutions to periods of stress.

  macroprudential, system wide risks that can build up across the banking

sector as well as the procyclical amplification of these risks over time.

These two approaches to supervision are complementary as greater resilience atthe individual bank level reduces the risk of system wide shocks.

The Basel III framework is summarized in a table which provides an overviewof the various measures taken by the Committee.

Basel III is part of the Committee's continuous effort to enhance the banking

regulatory framework. It builds on the International Convergence of CapitalMeasurement and Capital Standards document (Basel II).

COMPILATION OF DOCUMENTS THAT FORM THE GLOBAL

REGULATORY FRAMEWORK FOR CAPITAL AND

LIQUIDITY (BASEL II, BASEL 2.5 AND BASEL III)