02.5 At a minimum, the Committee expects its members to fully implement the Basel Framework for their internationally active banks. The Core Principles are also a Basel standard, but they are applicable to all banks in all jurisdictions.

02.6 Each Core Principle applies to the supervision of all banks and banking groups. The intensity of supervision will need to be commensurate with the risk profile and systemic importance of banks.

02.7 In supervising an individual bank which is part of a corporate group, it is essential that supervisors consider the bank and its risk profile from a number of perspectives: on a solo basis (but with both a micro and macro focus); on a consolidated basis (in the sense of supervising the bank as a unit together with the other entities within the "banking group") and on a group-wide basis (taking into account the potential risks to the bank posed by other group entities outside of the banking group). Group entities (whether inside or outside the banking group) may be a source of strength but they may also be a source of weakness capable of adversely affecting the financial condition, reputation and overall safety and soundness of the bank. Supervisors should carefully consider the risks posed to a bank where it is part of a group or financial conglomerate with a mix of regulated and unregulated entities across different sectors. In the discharge of their functions, supervisors must observe a broad canvas of risk, whether arising from an individual bank, from its associated entities (regulated or not) or from the prevailing macro-financial environment.