Basel Committee
BCBSAlso called basel Committee on Banking Supervision, basel Committee
The Basel Committee on Banking Supervision, or BCBS, is the main global standard setter for bank regulation. Hosted by the Bank for International Settlements in Basel, it brings together 45 central banks and supervisors from 28 jurisdictions. It writes standards on capital, liquidity, risk data and supervision, which members implement in national law.
How it works
G10 central bank governors set up the committee at the end of 1974 after the failure of Bankhaus Herstatt. It agrees standards by consensus and has no legal powers. Members commit to implementing them, and the committee checks their progress through its Regulatory Consistency Assessment Programme. Its best known output is the Basel framework, built up through Basel I, Basel II and Basel III.
Basel standards reach banks through national rules, such as the EU Capital Requirements Regulation or PRA rules in the UK, often with local changes and timing. For risk and compliance teams, BCBS 239 sets principles for risk data aggregation and reporting that supervisors test at large banks. The Core Principles set the benchmark that the IMF and World Bank use to assess supervisors.
The rules
Sets principles for governance, data architecture, accuracy, completeness and timeliness of risk data and risk reports.
Global systemically important banks, extended by supervisors to domestic systemic banksRevises credit, market and operational risk approaches and adds an output floor limiting the benefit of internal models.
Internationally active banksSets minimum standards for supervisory powers and banks' prudential practices, used in IMF and World Bank assessments.
Banking supervisors and the banks they overseeCommon questions
Are Basel Committee standards legally binding?
No. The committee has no legal authority. Its standards bind banks only once member jurisdictions put them into national law or rules. Members commit to full and timely implementation, and the committee publishes peer reviews of how closely each jurisdiction's rules match the standards.
Who are the members of the Basel Committee?
The committee has 45 members from 28 jurisdictions, made up of central banks and bank supervisors. It began with the G10 countries and expanded after the 2008 financial crisis to include major emerging economies. Several international bodies attend as observers.
What is BCBS 239?
BCBS 239 is the committee's January 2013 set of principles for risk data aggregation and risk reporting. It asks large banks to produce accurate, complete and timely risk data, especially in stress. Supervisors in the EU, UK and elsewhere continue to test banks against it.
How does Basel III reach banks?
Each jurisdiction implements it through its own rules. The EU applied most of the final Basel III package through CRR3 from 1 January 2025. Other jurisdictions have set their own dates and adjustments, so implementation timing differs between regions.
