Study · International body
The 2024 Revised Basel Core Principles for Effective Banking Supervision: Benefits and Practical Challenges for Emerging Markets and Developing Economies
The study explains what changed in the 2024 Basel Core Principles and what will be hardest for supervisors with less capacity to apply.
- Organization
- World Bank (WB)
- Document date
- November 2025
- Type
- Study
- Language
- English
- Scope
- International
- Length
- 49 pages
- Authorship
- Pierre-Laurent Chatain, Valeria Salomao Garcia and Basak Yetisen Teker (World Bank)
What it contains
The World Bank study, from the Prosperity Insight series and published in November 2025 by Pierre-Laurent Chatain, Valeria Salomao Garcia and Basak Yetisen Teker, examines the benefits and challenges of applying the Basel Core Principles (BCPs) revised in 2024, the first update since 2012. The BCPs, first issued in 1997, are the de facto global minimum standard for the prudential regulation and supervision of banks, and national authorities, the World Bank and the IMF use them to assess the effectiveness of supervision, including in Financial Sector Assessment Programs (FSAPs). The paper does not go principle by principle but by topic: financial risks, emerging risks, operational risk and operational resilience, systemic risks and macroprudential supervision, governance, risk management and transparency, non-bank financial intermediation and legal protection for supervisors.
The revision keeps the architecture of the principles and adds improvements: the integration of a leverage metric into capital adequacy, more granular expectations for credit risk, operational resilience (governance, cybersecurity and business continuity), stronger macroprudential supervision requirements and the explicit inclusion of climate-related and digital risks. It also upgrades several additional criteria to essential ones, above all in liquidity risk, interest rate risk, major acquisitions and corrective and sanctioning powers, and strengthens corporate governance, risk culture and transparency.
Among the implementation challenges for emerging markets and developing economies, the study points to proportionality (which can lead to excessive leniency or overly rigid rules when capacity is limited), climate-related financial risks (because of scarce data and expertise), operational resilience (cybersecurity, ICT risk and third-party oversight), forward-looking provisioning under expected credit loss models, business model assessments, transparency and corporate governance, including the oversight of state-owned banks. It recommends a strategic, phased approach, with investment in capabilities, data and analytical tools, peer learning, technical assistance and legal and institutional reforms.
Why it matters for risk management
For institutions and supervisors in countries such as the Dominican Republic, it offers a reading of what changes in the standards the IMF and the World Bank use to assess banking supervision, and it helps self-assess priorities in operational risk, climate, liquidity and governance. It is an interpretation by World Bank specialists and its opinions do not necessarily reflect those of the Bank, the Basel Committee or the IMF.
This copy of the PDF is hosted on the Club’s site under the World Bank’s permission to reproduce the work for noncommercial purposes with full attribution. The original is in the World Bank’s open repository.
Summary prepared by the Dominican Republic Risk Management Club from a reading of the original document, with the source verified on 12 October 2026. It does not replace reading the official text and is not advice.
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