The Basel Committee on Banking Supervision (BCBS) has published a consultation on revised guidelines for corporate governance at banks which build on the BCBS principles for enhancing corporate governance.

The revised guidelines aim to provide a framework in which banks should operate to achieve robust and transparent risk management, and promote public confidence in the banking system and are designed to:

strengthen the guidance on risk governance, including risk management roles and the importance of a sound risk culture;

1. expand the guidance on the role of the board of directors in overseeing effective risk management systems;
2. emphasise the importance of the board’s collective competence;
3. provide guidance for bank supervisors in evaluating the processes used by banks to select board members and senior management; and
4. recognise that compensation systems form a key component of the governance and incentive structure through which the board and senior management of a bank convey acceptable risk-taking behaviour.

The deadline for comments is 9 January 2015.

Copies of the:

guidelines: http://bit.ly/1rfphAj
and
press release: http://bit.ly/1rfphAj