Basel Committee On Banking Supervision

The Basel Committee developed as a cross-country regulatory response to the globalization of financial institutions and markets, which would otherwise connect national safety nets in an uncontrolled way. Its main objectives are to enhance understanding of key supervisory issues and to improve the quality of banking supervision worldwide. The membership of the Basel Committee is limited to the G10 member countries with Luxembourg, Belgium, and Switzerland. The Basel Committee's organizational structure is fluid. The procedures are designed to facilitate consensus building. The regular and confidential exchange of views, identification of best practices, and drafting of policy papers helps the authorities to find common ground without the distractions of external pressure. The Basel Committee has established itself as one of the central organs in the governance of global banking and finance. A core goal of the Basel Committee has always been to provide a forum for dialogue and information exchange. Keywords: banking supervision; Basel Committee's organizational structure; financial institutions