Basel Committee Proposes Guidelines

The Basel Committee on Banking Supervision issued a list Wednesday of 25 proposed principles for regulation.

The principles, which were released here by the Federal Reserve Board, would encourage banking supervisors to evaluate a bank's owners, management plan, and capital before issuing a charter. Examiners would review lending policies, risk-management systems, and safeguards against money laundering.

The committee urged that supervisors have the right to conduct on-site exams and to collect financial data periodically from the institution. The principles also say supervisors should be able to punish banks that do not hold enough capital or take reckless actions that put depositors at risk. The panel is accepting comments on the principles, through June 16.