Assessment of Banking Supervision Principles

Principle 1: A Clear and Effective Definition of Banking Supervision

The assessment for each principle under Principle 1 is as follows:

Principle 1(2): The Supervisor Should Have a Suitable Legal Framework for Its Operations

• Compliant: Yes
• Comments:
  • The law provides the supervisor with the necessary tools to perform its duties.
  • The Banking Supervision Ordinance 1994 grants the BNA the power to conduct on-site inspections and access banks’ files.
  • The supervisor can take remedial action or impose a range of sanctions, including fines for late reporting.

Principle 1(4): The Supervisor Should Have Access to All Necessary Information and Resources

• Compliant: Yes
• Comments:
  • Article 16 of the Banking Supervision Ordinance 1994 authorizes the BNA to conduct on-site inspections.
  • Credit institutions are obliged to provide the supervisor with all requested information.

Principle 1(5): A Suitable Legal Framework for Banking Supervision Is Also Necessary, Including Legal Protection for Supervisors

• Compliant: Yes
• Comments:
  • While there is no explicit provision that provides protection for the supervisory agency or its staff, general administrative and civil law precludes lawsuits against individual civil servants on the basis of good faith exercise of duties.
  • The BNA would appear in court if there were a lawsuit against the supervisor.

Principle 1(6): Arrangements for Sharing Information Between Supervisors and Protecting the Confidentiality of Such Information Should Be in Place

• Compliant: Yes
• Comments:
  • There is a system of cooperation and information sharing between domestic agencies with responsibility for the soundness of the financial system.
  • The BNA has concluded MoUs with Aruba, the Netherlands, and other countries to facilitate the exchange of information.

Principle 1(1) and (3): Assessment Not Applicable

• Principle 1(1): A clear and effective definition of banking supervision
  • Comments: Not applicable (the text does not provide an evaluation or comments for this principle).
• Principle 1(3): The legal framework should define the scope of banking supervision and clarify which institutions are supervised.
  • Comments: Not applicable (the text does not provide an evaluation or comments for this principle).

Note: This assessment is based on the provided text only and may not be comprehensive or up-to-date.