Thursday, July 24, 2003

Risk management principles for electronic banking

The Basel Committee on Banking Supervision has published two publications on risk principles for electronic banking. Nr 98 deals with Risk management principles for electronic banking and Nr 99 is an extension discussing the cross-border issues that are relevant in todays day and age (Management and supervision of cross-border electronic banking activities).

The documents are generic guidelines for bank supervisors. Sometimes these local supervisors make these documents part of the local regulatory regime by referring to the documents as applicable guidelines. This makes the Basle Committee a powerful non-elected de facto legislator. Fortunately, the reports are not too specific and of a motherhood and apple-pie nature.