What is Basel Committee on Banking Supervision?
Basel Committee on Banking Supervision is an institution of Governors of the Central Banks of “G-10” nations and was formed in 1974. It has 27 members viz. Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.
Out of them 12 are permanent members and its headquarters are located at Basel Switzerland.
This Basel Committee on Banking Supervision works on strengthening the soundness and stability of the banking system, internationally.
In July 1988, it had released the guidelines on Capital Measures and Capital standards, which were called Basel-I. These guidelines were accepted by RBI also and were implemented w.e.f 1992.
In June 2006, it again issued the revised guidelines which are called Basel II. In line with the Basel II, RBI had issued the detailed guidelines from 2007.
At Present Basel III is under development.