Financial Crime World

National Bank of Belgium (NBB) Internal Structure and Coordination

The National Bank of Belgium (NBB) is a key institution in the country’s financial system, responsible for regulating and supervising banks, payment systems, and other financial market infrastructures. In this article, we will delve into the NBB’s internal structure and coordination mechanisms.

Departments Responsible for Supervision and Oversight

The NBB has several departments that work together to ensure effective supervision and oversight of the financial system.

General Supervision (TA)

  • Covers macroprudential supervision
  • Responsible for microprudential policy, governance & accounting policy, and off-site AML/CFT supervision

Supervision of Banks (TB)

  • Responsible for off-site prudential supervision
  • Conducts on-site prudential supervision
  • Provides support functions to ensure effective supervision

Payments Oversight (TP)

  • Focuses on Payment Systems and Financial Market Infrastructures (FMIs) oversight

Internal Coordination and Decision Preparation

The NBB has several committees that play a crucial role in coordinating internal decision-making processes.

Risk Committee

  • Regroups all prudential services
  • Discusses regulatory policy proposals and horizontal analyses before they are escalated to the NBB Board for decision-making

SSM Risk Committee

  • Regroups prudential services, legal, and international coordination departments
  • Briefs the director before SSM Supervisory Board meetings

Macro-Financial Committee

  • Deals with macro-prudential policy analyses and proposals before they are escalated to the NBB Board for decision-making

Committee of T-services (cTc) and PRIME Committee

  • Regroups prudential services
  • Deals with cross-functionalities between these services for operational aspects

Annual Risk Review

The NBB conducts an Annual Risk Review, which is a critical process that informs the organization’s planned supervisory and policy priorities.

Key Components of the Annual Risk Review

  • The risk assessment takes into account the geopolitical situation, macro-economic and business environment, and ensuing major risk drivers
  • Per sector, the assessment results in work priorities and identifies issues relevant across sectors (e.g., related to climate, digitalization, AML/CFT, and macroprudential work)
  • The SSM priorities for addressing vulnerabilities are taken into account in the risk review of the banking sector

Conclusion

The NBB’s internal structure and coordination mechanisms ensure effective decision-making processes within the organization. The departmental responsibilities and committee structures enable the institution to respond promptly to emerging risks and challenges in the financial system.