Basel Committee streamlines banking guidelines into modular framework

The Basel Committee on Banking Supervision (BCBS) is proposing a significant overhaul of its guidelines and sound practices, moving them from a series of individual PDF documents to a consolidated modular format.

This initiative mirrors the successful consolidation of BCBS standards introduced in 2019, aiming to enhance accessibility and user-friendliness.

The new framework will comprise 13 modules, each divided into chapters, setting out expectations and practices on specific topics.

This structure is designed to facilitate easier maintenance and updates as supervisory practices and the financial system evolve.

The draft, launched alongside this consultative document, compiles 76 existing guidelines and sound practices, with recommendations for their incorporation into the new structure.

This reorganisation is intended to make it easier for users to locate and access relevant materials for specific topics, integrating links to source documents, related standards, and other publications.

A core objective of this consolidation is to substantially reduce the volume of BCBS guidance materials by approximately 75 percent.

The Committee has taken the opportunity to remove outdated, superseded, or duplicative content, resulting in a more streamlined and evergreen set of expectations.

While the framework aims to improve clarity and readability, the Committee has explicitly refrained from altering existing policies or introducing new expectations for banks or supervisors through this process.

The consolidated guidelines are intended to be a 'living document,' periodically reviewed and updated as new material is published, ensuring their continued relevance and effectiveness.