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    Basel Committee Principles of CG in Banking Companies

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    lil cool D
    The document summarizes the Basel Committee Principles of Corporate Governance in Banking Companies. It provides an introduction to the Basel Committee, outlines its history and membership growth. It then details the 13 core principles established by the Basel Committee to enhance oversight and supervision of banks, including principles related to board responsibilities, risk management, compliance, and disclosure. It also discusses how the Basel Committee seeks to achieve its global standards through information sharing and monitoring implementation. Finally, it provides an overview of how Basel principles may impact capital, liquidity and profitability for banks in Nepal.

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    Basel Committee Principles of CG in Banking Companies

    Uploaded by

    lil cool D
    82 views9 pages
    The document summarizes the Basel Committee Principles of Corporate Governance in Banking Companies. It provides an introduction to the Basel Committee, outlines its history and membership growth. It then details the 13 core principles established by the Basel Committee to enhance oversight and supervision of banks, including principles related to board responsibilities, risk management, compliance, and disclosure. It also discusses how the Basel Committee seeks to achieve its global standards through information sharing and monitoring implementation. Finally, it provides an overview of how Basel principles may impact capital, liquidity and profitability for banks in Nepal.

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    The document summarizes the Basel Committee Principles of Corporate Governance in Banking Companies. It provides an introduction to the Basel Committee, outlines its history and membership growth. It then details the 13 core principles established by the Basel Committee to enhance oversight and supervision of banks, including principles related to board responsibilities, risk management, compliance, and disclosure. It also discusses how the Basel Committee seeks to achieve its global standards through information sharing and monitoring implementation. Finally, it provides an overview of how Basel principles may impact capital, liquidity and profitability for banks in Nepal.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    82 views9 pages

    Basel Committee Principles of CG in Banking Companies

    Uploaded by

    lil cool D
    The document summarizes the Basel Committee Principles of Corporate Governance in Banking Companies. It provides an introduction to the Basel Committee, outlines its history and membership growth. It then details the 13 core principles established by the Basel Committee to enhance oversight and supervision of banks, including principles related to board responsibilities, risk management, compliance, and disclosure. It also discusses how the Basel Committee seeks to achieve its global standards through information sharing and monitoring implementation. Finally, it provides an overview of how Basel principles may impact capital, liquidity and profitability for banks in Nepal.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    Basel Committee Principles of Corporate

    Governance in Banking Companies

    Presented by:
    Mukesh Moktan Tamang

    MBA, Trimester VI, Section B

    Ace Institute of Management

    Fig.: Headquarter of Basel Committee, Switzerland

    October, 2022
    Contents

     Introduction to Basil Committee

     History of Basil Committee

     Principles of Basel Committee in Banking Companies

     Global Practice of Basel Committee Principles

     Basil Principles practice in Nepal


    Introduction to Basel Committee

    • Committee of banking supervisory authorities that was


    established by the central bank governors of the Group of Ten
    countries in 1974. The committee expanded its membership in
    2009 and then again in 2014.
    • Established to enhance financial stability by improving the
    quality of banking supervision worldwide, and to serve as a
    forum for regular cooperation between its member countries on
    banking supervisory matters.
    • Its objective is to raise awareness of critical supervisory issues
    and the quality of banking supervision globally.
    History to Basel Committee

    Basel Committee's membership has grown from the G10 to 45 institutions from 28 nations since its
    founding. Beginning with the Basel Concordat, which was first issued in 1975 and has been
    revised several times since, the Committee has established a series of international standards for
    bank regulation, most notably its landmark publications of the capital adequacy accords known as:

    Basel I : The Basel Capital Accord

    Basel II : The New Capital Framework

    Basel III : Responding to the 2007-09 Financial Crisis


    Principles of Basel Committee in Banking Companies

    Principle 1 : Board’s Overall Responsibilities

    Principle 2 : Board Qualifications and Composition

    Principle 3 : Board’s Own Structure and Practices

    Principle 4 : Senior Management

    Principle 5 : Governance of Group Structures

    Principle 6 : Risk Management Function

    Principle 7 : Risk Identification, Monitoring and Controlling


    Principles of Basel Committee in Banking Companies (contd.)

    Principle 8 : Risk Communication

    Principle 9 : Compliance

    Principle 10 : Internal Audit

    Principle 11 : Compensation

    Principle 12 : Disclosure and Transparency

    Principle 13 : The Role of Supervisors


    Global Practice of Basel Committee Principles

    Basel Committee seeks to achieve its mandate globally through the following activities:

    1. Exchanging information on developments in the banking sector and financial markets

    2. Sharing supervisory issues, approaches and techniques

    3. Establishing and promoting global standards for the regulation and supervision of banks

    4. Addressing regulatory and supervisory gaps that pose risks to financial stability

    5. Monitoring the implementation of Basel Committee standards in member countries

    6. Consulting with central banks and bank supervisory authorities

    7. Coordinating and cooperating with other financial sector standard setters and international
    bodies
    Basil Principles practice in Nepal

    The possible impact of Basel principles in capital, liquidity and profitability of the banks of Nepal
    are:

    • There is very minimum probability of increase in risk assets as a result of implementation of


    Basel principles as Nepalese banks have very low level of exposures in trading book, securitized
    instruments and derivatives.

    • Initiating new liquidity requirement as per Basel principleswill not be a very new and complex
    issue in the context of Nepal

    • In case of Nepal, the impact of Basel principles in earning is likely to be less than that of Europe
    (4 percent) and USA (3 percent) since there will not be a significant level of additional capital
    requirements for the securitized assets, derivatives and trading portfolios.
    THANK YOU

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