Current Issues in Banking Supervision and Regulation
The government tries to prevent bank failures and losses to depositors by strictly regulating the financial system and by close supervision and detailed bank examinations. The bank charter somewhat determines who the regulators of the new bank will be, and what specific rules and regulations will apply to them. It exercises these powers to reduce risk in the nation’s banking system. Objectives of the Supervision and Regulation function include protecting depositors’ funds; protecting consumer rights related to banking relationships and transactions; and maintaining a stable, efficient and competitive banking system. It reviews the latest developments in banking supervisory and regulatory topics. These include changes to capital adequacy standards, the new Basel liquidity measurement rules, as well as supervision of systemically important banks. The course sessions will focus on aspects of particular relevance to the region and will discuss main implementation challenges, as well as implications for banks and supervisory authorities. It also exercises and oversees the Board’s supervisory and regulatory authority over a variety of financial institutions and activities with the goal of promoting a safe, sound, and stable financial system that supports the growth and stability of the economy.
Objectives
- Provide specific legislation containing comprehensive provisions, particularly to the business of banking in India
- Prevent such bank failures by prescribing minimum capital requirements
- Ensure the balanced development of banking companies
- Give powers to RBI to approve the appointment, reappointment, and removal of the chairman, directors, and officers of the banks
- Safeguard the Interests of Depositors facilitate strengthening the banking system of the country
- Define and summarize the main elements of the Basel capital adequacy standards and their implementation
- Describe the latest reforms and developments in other international banking regulatory standards.• Identify good supervisory practices to capture and assess banking risks and take adequate supervisory actions.