Set up in 1974, the Committee first directed its attentions to ensuring that all internationally active banks were adequately supervised on a consolidated basis. The first agreement of this sort was the Basle Concordat,29 which established the principle that no foreign banking establishment should escape supervision, and that such supervision should be adequate.
The Concordat has been revised a number of times in the light of changing circumstances and perceived shortcomings, but a key principle has been maintained throughout: the home or parent supervisor is responsible for the global operations of banks headquartered in its territory and should supervise them on a consolidated basis.