Compliance Regulations Eased for Banking Industry in Northern Mariana Islands
The Commonwealth of the Northern Mariana Islands has taken a significant step towards easing compliance regulations for banks operating in the region. Governor Pedro P. Tenorio recently signed into law House Bill No. 12-201, CDI, HDl, which reduces the security requirements for bank assets from 110% to 100%.
Increased Efficiency and Economic Growth
The new law aims to increase the efficiency of the banking sector by allowing banks to reinvest available funds in the CNMI economy. According to government officials, this move will not compromise the protection of CNMI government funds deposited in banks.
Revised Regulations
Under the revised regulations, bank assets must be in the form of:
- United States Treasury bonds
- United States Government agency securities with readily ascertainable market value
- Obligations and securities backed by the CNMI Government
The bill also clarifies that the bank’s assets must be valued at 100% of the amount of government deposits.
Banking Industry Welcomes Changes
The Northern Mariana Islands’ banking industry has welcomed the new regulations, citing the need for more flexibility in managing their assets. The move is expected to boost economic growth and development in the region.
Public Law No. 12-61
Public Law No. 12-61, which was transmitted to Governor Tenorio on July 13, 2001, outlines the details of the revised regulations. The law becomes effective upon its approval by the Governor or its becoming law without such approval.
Safety and Soundness
The Northern Mariana Islands’ government has emphasized that the new regulations will not compromise the safety and soundness of banks operating in the region. Instead, they aim to promote a more efficient and competitive banking sector that can support economic growth and development.
Attracting Foreign Investment
With this move, the Commonwealth of the Northern Mariana Islands is sending a positive signal to investors and businesses looking to operate in the region. The easing of compliance regulations is expected to attract more foreign investment and stimulate economic growth, ultimately benefiting the local population.