Alert January 03, 2012

Basel Committee Issues Principles for the Supervision of Financial Conglomerates

The Basel Committee on Banking Supervision (the “BCBS”) has issued proposed principles regarding the supervision and regulation of financial conglomerates, particularly financial conglomerates with cross-border operations.  The proposed principles would update and revise the BCBS’ current principles framework for the supervision of financial conglomerates by expanding or supplementing the current principles in the areas of supervisory powers and authority, supervisory responsibility, corporate governance, capital adequacy and liquidity and risk management.  Comments on the proposed principles must be submitted to the BCBS by March 16, 2012.