Here is the rewritten article in markdown format:

Assessment of Banking Supervision in Aruba

The assessment of the legal framework for banking supervision in Aruba shows that it largely complies with international standards set by the Basel Committee on Banking Supervision (BCBS). Here are key points from the assessment:

Clear Legal Framework

• The law identifies the authority responsible for granting and withdrawing banking licenses, which is the BNA. This clarity helps in establishing a stable regulatory environment.
• Key Benefit: Clarity of authority enables a stable regulatory environment.

Prudential Rules

• The supervisor has the power to set prudential rules administratively without changing laws, although it seeks views from sector representatives before introducing new regulations.
• Flexibility: This flexibility allows for quick responses to emerging risks while also involving stakeholders in the process.

Access to Information

• The law empowers supervisors to require information from banks as needed, which is crucial for effective supervision.
• Key Features:
  • On-site inspections
  • Access to banks’ files
  • Review of compliance with internal rules and external laws

Addressing Compliance and Safety Concerns

• The supervisor can address compliance issues and safety concerns through prompt remedial actions and a range of sanctions, including revocation of the banking license or fines.
• Key Tools:
  • Prompt remedial actions
  • Range of sanctions (revocation of banking license, fines)

Legal Protection for Supervisors

• While there is no explicit provision protecting the supervisory agency or its staff against lawsuits, general administrative and civil laws provide protection based on good faith exercise of duties.
• Key Benefit: Supervisors are protected from personal liability for actions taken in good faith while performing their duties.

Areas for Improvement

• Explicit Protection Against Lawsuits: An explicit provision clarifying this protection would strengthen the legal framework.
• Protection Against Costs of Defense: Including a provision to protect against the costs of defending actions taken while discharging duties could enhance the support for supervisors.

Conclusion

Aruba’s legal framework for banking supervision largely complies with international standards and principles set by the BCBS. It provides for clear authority, flexibility in prudential rule-making, access to necessary information, tools to address compliance and safety concerns, and protection against lawsuits based on good faith actions. While there are areas where refinement could improve the legal framework, Aruba’s current setup supports effective banking supervision.