11. The Basel Committee on Banking Supervision (the Committee) has revised the Core Principles for Effective Banking Supervision (Core Principles). In conducting its review, the Committee has sought to balance the objectives of raising the bar for banking supervision (incorporating the lessons learned from the crisis and other significant regulatory developments since the Core Principles were last revised in 2006 [Most notably, elements of the enhanced international regulatory standards for capital and the new international liquidity standards, both designed to promote a more resilient banking sector, have been incorporated.]) against the need to maintain the universal applicability of the Core Principles and the need for continuity and comparability. By raising the bar, the practical application of the Core Principles should improve banking supervision worldwide.

12. The revised Core Principles strengthen the requirements for supervisors, the approaches to supervision and supervisors’ expectations of banks. This is achieved through a greater focus on effective risk-based supervision and the need for early intervention and timely supervisory actions. Supervisors should assess the risk profile of banks, in terms of the risks they run, the efficacy of their risk management and the risks they pose to the banking and financial systems. This risk-based process targets supervisory resources where they can be utilised to the best effect, focusing on outcomes as well as processes, moving beyond passive assessment of compliance with rules.