Basel Committee on Banking Supervision Law and Legal Definition

The Basel Committee on Banking Supervision (BCBS) is a forum providing for regular cooperation on banking supervisory matters. The BCBS works as an informal forum finding policy solutions and promulgating standards. The BCBS was established in the year 1974 by the Governors of central banks from ten nations. The BCBS meets four times a year. The BCBS secretariat is situated in Switzerland.

The committee aims at:

  • understanding of key supervisory issues; and
  • improving the quality of banking supervision worldwide.
  • The BCBS formulates extensive supervisory standards and guidelines for all the member nations. The BCBS recommends statements of best practice in banking supervision. The member nations and other nations implement the guidelines and standards issued by the BCBS through their own national systems. The BCBS promotes common understanding in solving national supervisory issues.