Policy Papers

The Basel Committee on Banking Supervision (BCBS) recently revised the Basel Core Principles for Effective
Banking Supervision (BCP). The BCP are the de facto minimum standards for the sound prudential regulation and
supervision of banks and banking systems and are universally applicable. This comprehensive update, the first since
2012, reflects the evolving financial landscape and incorporates feedback from a wide range of stakeholders including
BCBS members, nonmember countries, the IMF, and the WBG. After extensive consultation, the revised BCP were
approved by the BCBS in February 2024, and endorsed by the International Conference of Banking Supervisors in April
2024. The revised BCP document is a response to regulatory developments and structural changes within the
banking industry over the last decade. It addresses the lessons learned over the last 10 years, including from the
pandemic and the March 2023 banking turmoil; key findings from assessments under the Financial Sector Assessment
Program (FSAP); and new challenges posed by ongoing structural transformations, notably digitalization and climate
change. The revisions emphasize the importance of operational resilience, systemic risk management, and the adoption
of a proportional approach to supervision, catering to the global diversity of banks and banking system.