This article sets out a slightly amended version of a paper issued in November 2001 under the auspices of the APEC Finance Ministers' process. The article contains a summary of policy lessons that emerged from a Policy Dialogue on Banking Supervision, held in Mexico in June 2001, as part of an ongoing programme of capacity-building seminars and workshops held in the Apec Finance Ministers' process. The policy Dialogue was co-chaired by the Reserve Bank of New Zealand and the National Banking and Securities Commission of Mexico.