2024 Revised Basel Core Principles for Effective Banking Supervision

Policy Papers, August 2, 2024

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Canonical URL: 2024 Revised Basel Core Principles for Effective Banking Supervision

The Basel Committee on Banking Supervision (BCBS) revised the Basel Core Principles for Effective Banking Supervision (BCP), the de facto minimum standards for the sound prudential regulation and supervision of banks and banking systems, which are universally applicable.
This comprehensive update is the first since 2012.
The revisions were approved by the BCBS in February 2024 and endorsed by the International Conference of Banking Supervisors in April 2024.
The revised BCP reflect regulatory developments and structural changes in the banking industry over the last decade and incorporate feedback from BCBS members, nonmember countries, the IMF, and the WBG.

The revised BCP respond to lessons learned over the last 10 years, including experiences from:
- the pandemic, and
- the March 2023 banking turmoil.
Key findings from assessments under the Financial Sector Assessment Program (FSAP) informed the revisions.
The revisions emphasize:
- operational resilience,
- systemic risk management, and
- the adoption of a proportional approach to supervision to cater to global diversity of banks and banking systems.
The revised BCP address new challenges posed by ongoing structural transformations, notably digitalization and climate change.

The BCP remain universally applicable as de facto minimum standards for prudential regulation and supervision.
The revised framework promotes a proportional approach to supervision, recognizing diversity across jurisdictions and banking models.