54. The Core Principles are mainly intended to help countries assess the quality of their systems and to provide input into their reform agenda. An assessment of the current situation of a country’s compliance with the Core Principles can be considered a useful tool in a country’s implementation of an effective system of banking supervision. In order to achieve objectivity and comparability of compliance with the Core Principles in the different country assessments [The aim of assessments is, however, not for ranking supervisory systems. Please refer to paragraph 35.], supervisors and assessors should refer to this assessment methodology, which does not eliminate the need for both parties to use their judgment in assessing compliance. Such an assessment should identify weaknesses in the existing system of supervision and regulation, and form a basis for remedial measures by government authorities and banking supervisors.

55. Although Committee members individually collaborate in assessment missions, these are conducted primarily by the IMF and the World Bank. The Committee has decided not to make assessments of its own to maintain the current division of labour between the Committee’s standard-setting and the international financial institutions’ assessment functions. However, the Committee, together with the Financial Stability Institute, is prepared to assist in other ways, for example by providing training.

Use of the methodology