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Home > Education and Museum > CCBS Handbooks - Basic Principles of Banking Supervision
 

CCBS Handbooks - Basic Principles of Banking Supervision

Abstract No 7 - Basic Principles of Banking Supervision
By Derrick Ware

This Handbook explores some basic principles of banking supervision. First of all, it addresses the general question of why banks need to be supervised, and sets out the basic aims of supervision. It then examines the nature of banking risks. Next, the key areas of prudential supervision are discussed - namely, capital adequacy, liquidity, asset quality, risk concentration, management, and systems and controls. The need for an effective infrastructure for supervision, not least in respect of the legal and accounting environment, is noted. And the relative contributions of off-site and on-site supervision are briefly discussed.

The Handbook does not seek to prescribe what any country should do, or to promote particular national practices (which may be mentioned by way of illustration). Rather, it seeks to introduce the nature and concepts of supervision to those for whom the subject may be comparatively unfamiliar.

This handbook is also available in Russian and Spanish.

Key Resources

Basic Principles of Banking Supervision
Complete handbook
Download PDF (71k)
Basic Principles of Banking Supervision
Spanish language version
Download PDF (80k)
Basic Principles of Banking Supervision
Russian language version
Download PDF (215k)
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