The Basel Principles for banking supervision

The Basel Principles are a set of global recommendations designed to ensure effective regulation, supervision, governance and risk management in the banking sector. These principles are based on the Bank for International Settlements and aim to strengthen the financial system by promoting sound practices and minimizing vulnerabilities, by guiding banking institutions in establishing clear responsibilities, maintaining internal controls and prudently managing risks, ensuring transparency, accountability and resilience. The Basel Committee's banking standards and I principles are not legally binding; however, their implementation usually takes place through the domestic legislative and regulatory processes of member states, which makes them mandatory once adopted in national legislation or regulations, in order to align their national regulatory framework with international best practices.