Banking Supervision (Basic Core Principles (BCS) (Inherent Risks (Risk…
Basic Core Principles (BCS)
Reviewed from 25 in 2012
"1 - 13"
Roles (Functions), Responsibilities, Power (Authority) of Supervisors
Need for early intervention
Need for timely supervisory actions through the Risk Based Supervision (RBS) Framework
Risk Based Supervision (RBS) Framework
Advantages of RBS
Not Resource Intensive
Addresses root causes rather than symptoms
Emphasizes risk management (quality of risk management) as single most important issue for regulators
Risk Management Control Functions
4 more items...
Not a "one size fit all"
i.e. It accounts for differences in scope, size, risk and complexity
Characteristics of RBS
Emphasizes continuous assessment
- Risk profile
- Financial conditions
- Risk management process
- Compliance with laws and regulations
Financial Institutions Risk Matrix
"14 - 19"
Need for good governance
Need for Risk Management
Need for Compliance with Standards, Laws and Regulations
De facto minimum standard for prudential regulations & banking supervision
Used by IMF and World Bank to assess a country's banking system
Pre-conditions for Effective Banking Supervision