The Basel Committee on Banking Supervision (Basel Committee) and the Basel Consultative Group (BCG) issued a joint statement supporting the use of proportionality in implementing the Basel Framework. WOCCU applauds this joint statement as it has been urging further guidance directing national-level authorities to tailor Basel standards to the size, complexity and risk of a credit union or other community-based mutual depository institutions. National-level regulators often tend to use the highest standard which often times are not appropriate or are excessive for credit unions. This joint statement reinforces the need to use the built-in proportionality contained in the Framework and not use the Basel Framework as a floor.
A copy of the joint statement can be viewed here.