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The Basel Committee on Banking Supervision (BCBS) plays a crucial role in establishing regulatory frameworks that promote stability within the banking sector globally. It focuses on formulating standards and guidelines that enhance banking supervision and promote sound banking practices.

By issuing banking regulations and supervisory practices, the BCBS aims to strengthen the financial system by minimizing risks and ensuring that banks operate securely and efficiently. These regulations often encompass capital adequacy, stress testing, and liquidity standards, which are essential for preventing banking crises and ensuring that banks can withstand financial turmoil.

The other options do not accurately represent the BCBS's responsibilities. While it is involved in creating international regulations, it does not manage financial crises directly nor does it provide loan guarantees. Additionally, the committee does not create policies for individual banks, as its focus is on broad regulatory principles applicable across jurisdictions.