New corp gov subgroup for Basel

BASEL, SWITZERLAND -- The Basel Committee on Banking Supervision has launched a new subgroup of the Accord Implementation Group, according to a source within the Basel Committee. The group is updating the corporate governance guidance that the Committee last issued in September 1999, Enhancing corporate governance for banking organisations . The revised guidance is not part of Basel II, but a separate project. The source says: "It is not a major revamp. We are going to revisit it and bring it more up to date."

The need to update the high-level principles stems from four factors, says the source. First, events such as Enron, WorldCom and Parmalat have highlighted the need for improved corporate governance at companies of all types. Second, he points out that the Organisation for Economic Co-operation and Development (OECD) -- an international organisation composed of 30 countries devoted to free-market