By Kang Seung-woo
The Basel Committee on Banking Supervision (BCBS) was established by the central bank governors of 10 countries in December 1974. It was broadened to include more members in 2009 ― Korea also became a member in March of that year.
The BCBS formulates broad banking supervisory standards and guidelines, expecting member nations and others to implement them through their own national systems.
The members are Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong, India, Indonesia, Italy, Japan, Luxembourg, Korea, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.
The Switzerland-based organization is chaired by Nout Wellink, president of the Netherlands Central Bank who took the helm on July 1 2006, with Stefan Walter serving as secretary general.
The committee meeting, scheduled for Tuesday in Seoul, will gather to finalize issues related to a regulatory reform package, as this will be its final meeting before reporting on such during the G20 Seoul summit on Nov. 11 and 12.
The regulatory reform package at the individual bank-level includes strengthening banks’ capital adequacy and introducing global liquidity standards.
It is also finalizing its macro-prudential work with a focus on systemically important banks, which could be addressed through combinations of capital surcharges, contingent capital and bail-in debt.
The meeting will bring together about 60 senior officials responsible for the banking supervision of 44 supervisory authorities and central banks from 27 countries, and international financial institutions.
Along with the BCBS gathering, the Financial Stability Board plenary meeting will take place one day after.
The two meetings in Seoul are of great significance leading up to the G20 Seoul Summit because of their coordination of regulatory reform tasks assigned by the G20 heads of state.