From Open Risk Manual


BCBS D460 is a document published by the Basel Committee on Banking Supervision on March 2019 in the Core Principles category.


Proportionality in bank regulation and supervision - a survey on current practices.


The Basel Committee on Banking Supervision is today publishing the results of a survey it conducted on proportionality practices in bank regulation and supervision. The report summarises the responses received to the survey by Basel Committee member jurisdictions and those of the Basel Consultative Group.

In brief, the majority of respondents to the survey currently apply proportionality measures in their jurisdictions. In most cases, such measures are applied to banks that represent a relatively small share of total banking assets in the relevant jurisdiction, although there is a fair degree of heterogeneity.

Jurisdictions rely on a number of determinants in identifying proportionality thresholds / segments. These include a wide number of balance sheet metrics and differentiation by banks' business models. In most cases, these indicators are coupled with supervisory judgment when determining the scope of banks subject to different requirements.

Most jurisdictions apply some form of proportionality related to capital and liquidity requirements. These generally take the form of a modified / simpler version of existing Basel standards, particularly for the more complex risk categories, or an exemption from such requirements for certain banks. Jurisdictions similarly apply proportionate reporting and disclosure requirements, with some banks subject to less onerous requirements and submission frequencies. Most jurisdictions also apply a proportionate approach to their supervisory practices, including the intensity of on- and off-site examinations, requirements related to risk management controls and governance, and supervisory stress tests.

Document Profile

  • Publication Date: March 2019
  • Publication Type: Other
  • Publication Status:
  • Publication Category: Core Principles
  • Number of Pages: 16
  • Keywords: Basel Core Principles

See Also


For definitive information on regulatory matters always consult primary sources, especially where it concerns legally binding rules and regulations.

The above regulatory document abstract is quoted verbatim in this Open Risk Manual entry and provided free of charge for the convenience of all internet users. There is no explicit or implicit endorsement of this web service by the Bank of International Settlements. The copyright of the included material rests with the original authors (Links to the original texts are duly provided).