Supervision in Banking System: An Emphasis on Supervision Principals of Basel Committee as an International Supervisor

In this article, we discuss about philosophy of central banking and the importance, way and means Supervision in banking system. Basel committee's pivotal principals are the great stride after the World War II about principals and rules of international banking. These rules do not approve by formal international authorities but their obligatory nature induces us to obey them. Effective Supervision needs to public infrastructures, which are in accordance with the new developments. Beside the legal context to insure the effective supervision, there should be transparent principals through which the supervisors can do their job without any political pressures. At last, we discuss about Basel committees standards on supervision as an international supervisor organization. All countries should obey these standards in an era of globalization and integration of states to reach to the homogeneous pattern. Finally, we offer some recommendation to solve the problems of the Supervision in international banking.