|
1. Diversification of risk is a key precept in banking. A significant proportion of major bank failures have been due to credit risk concentration of one kind or another. Following preliminary discussion of this issue at the fifth International Conference of Banking Supervisors in October 1988, the Basle Committee on Banking Supervision developed a discussion paper for the sixth International Conference in Frankfurt in October 1990. The paper received broad approval and, after taking into account various comments made, is now being reissued as a guide to best practice for bank supervisors in the monitoring and control of large credit exposures.
|
