I learned first-hand the views of CPLG members on ways to build the Committee’s rapport with other supervisors. I also received valuable suggestions on the Committee’s projects. The Committee will continue to rely on the expertise of the CPLG to provide non-G10 reactions to many of its main initiatives. For example, the Accord Implementation Group, which is chaired by Nick Le Pan, the Vice Chairman of the Committee and Superintendent of Financial Institutions in Canada, holds regular meetings with the CPLG to bring attention to non-G10 issues in implementing Basel II. Beyond this standing group, the Committee seeks other avenues for formal and informal discussions with other supervisors. The CPLG itself has recently suggested that regional groups of banking supervisors strengthen their activities so that they may serve as another channel for greater communication, cooperation, and commitment to shared objectives. The Basel Committee has long supported the development and mission of these regional groups. These groups foster regional cooperation as well as continued dialogue with the Basel Committee and other supervisors. More than a dozen of these regional groups exist, most of which met here yesterday. I encourage all of them to continue to develop programmes of their own. At a meeting between the Committee and the principals of the various regional groups, we discussed additional ways to strengthen future interactions between the Basel Committee and regional groups. One other formal effort that the Committee and its members support includes those events sponsored by the Financial Stability Institute of the Bank for International Settlements.

Our workshops this afternoon will consider how to plan our transitions to Basel II, to prepare for the adoption of advanced approaches to risk management and the implementation of Pillar 2, and to strengthen cooperation between home and host supervisors. With regard to this last topic of cooperation, I believe that our safety and soundness goals can be achieved more easily when supervisors adopt more consistent approaches. In particular, Basel II will have the greatest impact if supervisors work in concert rather than in a vacuum. This makes it critical for the Basel Committee to build its ties and to encourage cooperation with other supervisors. Indeed, as I suggested earlier, many of the improvements to the Basel II proposals resulted from discussions with other supervisors and central banks. The quality of our dialogue illustrates the very good state of relations between all banking supervisors today. This event, for example, represents one  4  BIS Review 52/2004  of the most important opportunities for an exchange of views among Committee members and other supervisors. But what begins here must translate into other avenues for communication on both multilateral and bilateral levels. In this regard, the Core Principles Liaison Group, or CPLG, serves as the main forum for exchanges between Basel Committee members and other supervisors. This working group includes representatives from Committee member countries, 16 non-G10 supervisors, the International Monetary Fund, and the World Bank. Earlier this year, I chaired a very productive special session with this group.