|For immediate release|
The Basel Committee on Banking Supervision has issued a paper providing guidance on managing the settlement risk arising from foreign exchange transactions. The paper is part of the committee's ongoing effort to strengthen procedures for risk management in banks. It can be obtained from the web site of the Bank for International Settlements (BIS) at http://www.bis.org.
Supervisory Guidance for Managing Settlement Risk in Foreign Exchange Transactions stresses that banks should manage foreign exchange settlement risk, like other credit risks of a similar size and duration, through a formal process of measurement and control with active senior management oversight. The paper is a revision of a consultative paper issued in July 1999. It builds on the previous work of the BIS' Committee on Payments and Settlements Systems.
The Basel Committee was established in 1975 by the central banks of the Group of Ten countries and operates under the auspices of the BIS in Basel, Switzerland. It consists of senior supervisors of the world's largest banking systems and works to strengthen supervisory and regulatory practices worldwide.
2000 Banking and consumer regulatory policy