to promote stability of the banking system and to protect the interests of depositors and the general public;
to ensure a sound banking system whose activities are transparent to and governed by market economy;
to provide an enviroment of confidence for investors and depositors while enabling growth and profitability for the industry.
The role of banking supervision is to promote safety and soundness by ensuring that:
to insure, through licensing process that only fit and proper owners and management, that fulfill the legal, professional and thic requirement have the right to enter in the banking market; who have adequate capital in line with the risks to be undertaken, and have operating policies and procedures to control those risks;
to insure that existing banks operate soundly in accordance with law and regulations, have adequate capital and liquidity for foreseeable needs, maintain satisfactory asset quality and adequate resources to offset perceived risks, exercise international standards for best proctice in the management of their activities, and conduct their affairs in a manner that is nor harmful to clients and general public;
to insure that banks with problems are resolved quickly and efficiently in a manner that protect depositors to fullest extent possible, minimises the cost to Gevernment and public.
To fulfill this role, banking supervision:
drafts and revises regulations governing entry to the system, prudential operation of banking activities while in the system, monitors the results, achived, receivership and censervationship of banks, and enforces complieance with those laws and regulations;
establishes pro-active policies and strategies for the supervision of individual banks and banking system that are based upon an assessment of inherent risks;
develops supervisory procedures, standards and guidelines that are consistent with international practice;
implements those procedures, standards and guidelines consistently;
assures that adequacy of staff in terms of number and proficiency to properly supervise the industry;
fsponsors and participate in regular communications with the industry and other supervisors on matters of common interest or concern.