Bank supervisors from 120 countries endorse updated international principles for effective banking supervision

At the International Conference of Banking Supervisors held in Mérida, Mexico, on 4–5 October 2006, bank supervisors from central banks and supervisory agencies in 120 countries endorsed the updated version of the Basel Core Principles for Effective Banking Supervision and its Methodology. They declared their continued support for the implementation of international minimum standards for bank supervision in all countries.

The Core Principles were originally written and agreed in 1997, being one part of the global response to strengthen the international financial system in the wake of the financial crises that occurred during the 1980's and 1990's. The 25 Principles are globally agreed minimum standards for banking regulation and supervision, covering a wide range of aspects including areas such as licensing, ownership of banks, bank capital adequacy, risk management, consolidated supervision, ways to deal with problematic situations in banks, and the division of tasks and responsibilities between home and host authorities. The Core Principles Methodology, which was developed in 1999, provides further details and guidance to assist in the interpretation and assessment of the 25 Core Principles.