Basel Committee Provides Corporate Governance Guidance for Banking Organizations

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Saturday, April 1, 2006
Bruce Zagaris
On February 13, 2006, the Basel Committee on Banking Supervision issued guidance on sound corporate governance practices by banking organizations. Entitled "Enhancing Corporate Governance for Banking Organizations," the guidance results from a consultative document published in November 2005 and a paper originally published by the Committee in 1999, as well as principles for corporate governance issued by the Organization for Economic Cooperation and Development in 2004. The guidance will help ensure the adoption and implementation of sound corporate governance practices by banking organizations worldwide. However, the guidance is not intended to establish a new regulatory framework layered on existing national legislation, regulations or codes. Instead, it will help fortify what is known as international financial architecture – the standards on which supervisors and banking organizations operate … [more]