The paper stresses, for example, the importance of flexibility and pragmatism in sharing information, but acknowledges local confidentiality laws should be taken into account to facilitate the smooth implementation of Basel II. It also notes that approaches among supervisors may differ with regard to Pillar II and that an in-depth discussion may be required between home and host supervisors on Pillar II and its impact.
“As supervisors implement Basel II on a bank-by-bank basis, this paper will assist them in developing effective information-sharing processes,” said Jaime Caruana, chairman of the Basel Committee and governor of the Bank of Spain. “We need to foster more effective supervisory cooperation, which is key to the success of implementing Basel II.”
The consultation paper was developed in association with the Core Principles Liaison Group, a Committee working group that includes banking supervisors from sixteen non-Committee member countries, and invites comments to be submitted by February 28, 2006.
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