In a revised consultative document, the Basel Committee on Banking Supervision has stressed the need for sound corporate governance to underpin the implementation of the Basel II Accord.
Whilst the Committee emphasises that they do not intend to introduce a new requirement to the revised international framework for bank capital adequacy, the document is nevertheless firm in its assertion that good governance is fundamental to implementing an effective Basel II framework.
The document, "Enhancing Corporate Governance for Banking Organisations", is a revision of guidance published by the Committee in 1999 and has been issued to provide banks and supervisors with practical guidance on corporate governance which is relevant to the unique characteristics they face. It draws on a revised set of guidelines issued last year by the Organisation for Economic Co-operation and Development (OECD). Both sets of revisions have been made in recognition of the considerable national and international attention created after a number of high-profile breakdowns in corporate governance.
|
