"What I am describing would entail some recasting of the key pillars of international supervisory co-operation: the Basel Concordat
, Core Principles of Supervision, and Capital Accord," he added.
Basel II requires continuation of existing cross-border responsibilities of supervisors, as set out in the Basel Concordat
and Minimum Standards documents.
In December 1975, the Committee adopted the "Basel Concordat
," calling on host- and home-country authorities to share supervisory responsibility for banks' foreign activities.
As you will be aware, home and host countries undertake their banking supervision roles and responsibilities within the framework of home-host supervision set out in the Basel Concordat. The Concordat emphasises the general responsibility of home country authorities to supervise banks' worldwide consolidated activities, as well as the host country responsibility to supervise foreign bank establishments in their territories as individual institutions.
In fact, we feel that New Zealand leads the world in home/host dovetailing from the host viewpoint within the very general framework provided by the Basel Concordat.
The Basel Concordat has since been amended and extended as the result of the lessons learned from subsequent bank failures and banking crises.
Implementation of the capital adequacy rules promoted by the Basel Concordat has been a major force promoting the increase of bank capital and reserves generally.
The internationally-agreed framework for the supervision of multinational banks, as devised by the Basel Committee on Banking Supervision, is known as the Basel Concordat
(not to be confused with the Basel Accord on capital standards for banks).
The Geneva-based World Health Organization uses her to help develop a universal set of health standards, much as the Basel concordats
have done for the banking world.