Consultation paper: Promotion of a common framework for supervisory disclosure
The FME has issued a consultation paper which includes guidelines to promote a common framework for supervisory disclosure. New international rules on capital requirements for credit institutions will take effect on January 1, 2007. The new rules are based on standards of the Basel Committee of Banking Supervision; Basel II: International Convergence of Capital Measurement and Capital Standards. The framework rests on three pillars. The objective of Pillar II is to enhance the link between a credit institution’s risk profile, its risk management and risk mitigation systems, and its capital requirements. The guidelines of the Committee of European Banking Supervisors (CEBS) on Supervisory Review Process are issued, among other things, due to an increased need for cross-border cooperation of supervisory authorities.