Comments Invited by March 30
To All State Member Banks, Bank Holding Companies, and Branches and Agencies of Foreign Banks, in the Second Federal Reserve District:
The following is from a statement by the Board of Governors of the Federal Reserve System:
The Basle Committee on Banking Supervision (Basle Committee) has issued a paper entitled Framework for the Evaluation of Internal Control Systems as part of its ongoing work to improve risk management standards in banks.
The paper describes elements that are essential to a sound internal control system and lists fourteen principles for use by supervisory authorities when evaluating banks' internal controls.
The internal control framework described in the paper is in the context of international banking organizations and it is consistent with the Committee of Sponsoring Organizations of the Treadway Commission (COSO) document, Internal Control-Integrated Framework.
The paper is being distributed to supervisory authorities around the world, to banks and to other interested parties. Comments to the Basle Committee are invited by March 30, 1998.
Comments may be sent to Kausar Hamdani, Assistant Vice President, Advisory and Technical Services, at the Federal Reserve Bank of New York, and/or directly to the Basle Committee Secretariat at the Bank for International Settlements.