The Basel Committee on Banking Supervision released guidelines Monday governing effective banking oversight and managing interest rate risk.

The Basel Core Principles for Effective Banking Supervision, revised from a release in April, assert 25 elements that governments should embed in their oversight programs.

These include independent and adequately funded agencies, the ability to reject significant shifts in the controlling interest of banks, setting appropriate minimum capital standards, requiring market risk controls, and requiring institutions to keep adequate financial records.

The deadline for supervisory authorities to endorse these core principles is October 1998.

Separately, the committee's 11 principles on interest rate risk management recommended a vigilant board and senior management, clearly defined policies and procedures, extensive monitoring systems and internal controls, as well as the supply of timely information to regulatory authorities.

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