Dhaka, Nov. 30 -- In the dynamic realm of global finance, characterized by economic uncertainty and increasingly complex financial instruments, the Principles for the Management of Credit Risk established by the Basel Committee on Banking Supervision (BCBS) serve as a fundamental framework.

Updated in April 2025, these principles not only reaffirm the essential tenets of prudent banking but also adapt to contemporary challenges, including climate-related risks and the complexities of counterparty exposures.

Governance: The foundation of effective risk managementAt the heart of the BCBS framework lies the imperative for a bank's board of directors to take ownership of the credit risk strategy. This responsibility is not merely symbolic; ...