This paper, prepared by the Electronic Banking Group (EBG) of the Basel Committee on Banking Supervision, details issues and concerns relating to risk management and supervision of cross-border e-banking.
The bank has published the paper in anticipation of an explosion of activity in the provision of online banking services across borders.
It stresses the need to integrate cross-border e-banking risks into an overall risk management framework. The paper contains refinements to existing risk management principles concerning the responsibility of banks to conduct appropriate due diligence and risk assessment, provide adequate disclosures, and establish an ongoing risk management oversight process prior to engaging in cross-border e-banking.
The paper also draws attention to the need for effective home country supervision of cross-border e-banking activities as well as continued international cooperation between banking supervisors regarding such activities.
The BIS is inviting comments on issues outlined in the paper which should be submitted to relevant national supervisory authorities and central banks by the end of the year.
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