The Basel Committee on Banking Supervision - A History of the Early Years, 1974–1997

The Basel Committee on Banking Supervision (BCBS) sets the guidelines for world-wide regulation of banks. It is the forum for agreeing international regulation on the conduct of banking. Based on special access to the archives of the BCBS and interviews with many of its key players, this book tells the story of the early years of the Committee from its foundation in 1974/5 right through until 1997 – the year that marks the watershed between the Basel I Accord on Capital Adequacy and the start of work on Basel II. In addition, the book covers the Concordat, the Market Risk Amendment, the Core Principles of Banking and all other facets of the work of the BCBS. While the book is primarily a record of the history of the BCBS, it also provides an assessment of its actions and efficacy. It is a major contribution to the historical record on banking supervision. • A unique and authoritative study of the history of international financial regulation up to 1997 based on access to both the archives of the Basel Committee and many of the protagonists • Allows readers to understand how financial regulation has developed by throwing additional light on key aspects, including its comparative successes and failures • Provides both a record of events, reproducing many key documents, and an assessment of the efficacy of the Basel Committee

List of figures List of tables Foreword Nout Wellink Background and acknowledgments 1. Introduction 2. The antecedents of the BCBS 3. Modus operandi: chairmen, secretariat, members, the structure of meetings 4. The Concordat 5. External and foreign exchange issues 6. Capital adequacy and the Basel Accord of 1988 7. The Market Risk Amendment 8. The core principles of banking supervision 9. Liquidity 10. Off balance sheet exposures and derivatives 11. Other topics addressed by the BCBS 12. The relationship of the BCBS with banks and other banking regulators 13. Relationships with other non-bank oversight and supervisory bodies 14. The legal position of the BCBS 15. The international relations of the BCBS 16. BCBS and the social sciences 17. Epilogue Index.