In considering recent developments, as well as what remains to be done, it is also useful to begin by recalling the situation that prevailed at the onset of the financial crisis. In its early years, the Basel Committee on Banking Supervision’s work focused on elaborating the responsibilities of home and host regulators of internationally active banks.
The principle of consolidated supervision was developed in the early 1980s, and reinforced following the failure of the BCCI in the early 1990s, in an effort to ensure that some regulatory authority had an overview of a global bank’s consolidated assets and liabilities.