Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Foreword
- Preface
- 1 Introduction
- 2 The antecedents of the BCBS
- 3 Modus operandi
- 4 The Concordat
- 5 External and foreign exchange issues
- 6 Capital adequacy and the Basel Accord of 1988
- 7 The Market Risk Amendment
- 8 The Core Principles of Banking Supervision
- 9 Liquidity
- 10 Off-balance-sheet exposures and derivatives
- 11 Other topics addressed by the BCBS
- 12 The relationship of the BCBS with banks and other banking regulators
- 13 Relationships with other non-bank oversight and supervisory bodies
- 14 The legal position of the BCBS
- 15 The international relations of the BCBS
- 16 The BCBS and the social sciences
- 17 Epilogue
- Bibliography
- Index
4 - The Concordat
Published online by Cambridge University Press: 07 September 2011
- Frontmatter
- Contents
- Figures
- Tables
- Foreword
- Preface
- 1 Introduction
- 2 The antecedents of the BCBS
- 3 Modus operandi
- 4 The Concordat
- 5 External and foreign exchange issues
- 6 Capital adequacy and the Basel Accord of 1988
- 7 The Market Risk Amendment
- 8 The Core Principles of Banking Supervision
- 9 Liquidity
- 10 Off-balance-sheet exposures and derivatives
- 11 Other topics addressed by the BCBS
- 12 The relationship of the BCBS with banks and other banking regulators
- 13 Relationships with other non-bank oversight and supervisory bodies
- 14 The legal position of the BCBS
- 15 The international relations of the BCBS
- 16 The BCBS and the social sciences
- 17 Epilogue
- Bibliography
- Index
Summary
Home/host relationships, 1975
As already noted in Chapter 2, the main focus of the G10 governors’ communiqué, establishing the Basel Committee on Banking Supervision (BCBS), was on external financial issues, notably on ‘the need for an early warning system’ for potential future international financial crises. Nevertheless, besides a survey, a summary paper, produced by the BIS on ‘existing regulations and supervisory practices’ in the member countries, the agenda for the first meeting (BS/75/1) had as item V a discussion of ‘Future Work’ (also see Chapter 3). The four topics that were then (6–7 February 1975) (BS/75/5) selected for such further consideration, with further work to be commissioned on them, were:
relation of banks with foreign exchange brokers (see Chapter 5);
responsibility for supervision of banks’ overseas branches, subsidiaries and joint ventures;
techniques of support and rescue operations (see Chapter 11); and
definition of capital and its role (see Chapter 6).
The question of what should be the relative responsibilities of home/host supervisors had been a key concern that had led to the initiative for the foundation of the Groupe de Contact (see Chapter 2). So it was no surprise that Huib Muller of the Nederlandsche Bank, one of the founding fathers of the Groupe, and initially appointed to the BCBS, volunteered to produce a paper on this topic. Indeed, he must already have had such a paper ready for this purpose, since the first draft was available and circulated by the BIS on 17 March 1975 (BS/75/11).
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- Chapter
- Information
- The Basel Committee on Banking SupervisionA History of the Early Years 1974–1997, pp. 96 - 126Publisher: Cambridge University PressPrint publication year: 2011