The Basel Committee on Banking Supervision conducted a preliminary study of the risk management implications of e-banking and e-money in 1998, which led to the formation of the Electronic Banking Group (EBG) in November 1999.

According to a publication entitled Electronic Banking Group Initiatives and White Papers [source] (available free of charge), the EBG's "work plan at this stage is focused on facilitating analyses and dialogue among supervisors that will lead to the development of a prudential supervisory framework for e-banking activities. Reasonable prudential standards should provide for safe and sound conduct of activities without inhibiting innovation and competition that will benefit the banking industry as well as the customers it serves.

"In this regard, the EBG will focus on the following action items:

•   Building upon work conducted to date and in process, the EBG will develop guiding principles for the prudent risk management of e-banking activities;
•   The EBG will identify if and where existing Basel Committee guidance needs to be adapted to facilitate the sound supervision of cross-border e-banking activities;
•   The EBG will promote co-operative international efforts within the banking industry and between the public and private sectors to identify e-banking risk issues and sound practices to deal with them;
•   The EBG will encourage and facilitate the exchange of supervisor e-banking training programmes and materials that are being developed by bank supervisors."