Basel Committee issues high-level considerations on proportionality

• Basel Committee issues high-level considerations on proportionality.
• The high-level considerations aim to provide practical support to supervisory authorities seeking to implement proportionality in their domestic regulatory and supervisory frameworks.
• The considerations are voluntary and do not modify any of the Committee's existing standards, guidelines or sound practices.

The Basel Committee on Banking Supervision today issued high-level considerations on proportionality. Through this publication, the Committee aims to provide practical support to supervisory authorities seeking to implement proportionality in their domestic regulatory and supervisory frameworks, in a way that does not undermine financial stability or the safety of financial institutions.

The high-level considerations were developed by the Basel Consultative Group (BCG), which is the Committee's main outreach group. The considerations build on the Committee's prior work on proportionality, including its statement on proportionality and 2019 and 2021 surveys on proportionality practices. The paper includes both high-level considerations to guide proportionate decision-making and technical annexes that outline more specific considerations relating to various elements of the Basel Framework.

The high-level considerations are voluntary and do not modify theCore principles for effective banking supervision, Basel Framework or any of the Committee's existing standards, guidelines or sound practices.