Basel Committee on Banking Supervision (BCBS)

The Basel Committee on Banking Supervision (BCBS) is an international body that sets global standards for the regulation of banks and aims to enhance financial stability worldwide. Established in 1974 by the central bank governors of the G10 countries, the BCBS formulates broad supervisory standards and guidelines and recommends best practices in banking supervision. The most notable outcomes of the BCBS are the Basel Accords, which set minimum capital requirements and other regulatory standards for banks. The BCBS plays a crucial role in harmonizing banking regulations across countries, ensuring a level playing field and reducing systemic risks.

Example

The BCBS developed the Basel III framework, which tightened capital requirements and introduced new regulatory standards for liquidity and leverage to strengthen the global banking system.