02.9 The concept of proportionality ensures that applicable rules and supervision practices are consistent with banks' systemic importance and risk profiles, as well as appropriate for the broader characteristics of a particular financial system. The objective of proportionality is not to dilute the robustness of standards but to reflect jurisdictions' circumstances and supervisory capacity. [For further information on practical considerations in implementing proportionality, see the Committee’s High-level considerations on proportionality (July 2022) and Guidance on the application of the Core Principles for effective banking supervision to the regulation and supervision of institutions relevant to financial inclusion (September 2016).]

02.11 The Core Principles recognise that the appropriate intensity of supervision for banks varies, with more time and resources devoted to larger, more complex or riskier banks. Supervisors should assess the risk profile of banks in terms of the risks they run, the efficacy of their governance and risk management, and the risks they pose to banking and financial systems. This process focuses supervisory resources where they can be utilised optimally, concentrating on outcomes and moving beyond passive assessment of compliance with rules.