Here’s the article formatted in markdown:

Assessment of Compliance with Principle 1: Legal Framework for Banking Supervision

==========================================================

Based on the provided text, the assessment of compliance with Principle 1 is as follows.

Compliant Status

The legal framework for banking supervision in Aruba (as described in the Banking Supervision Ordinance 1994) appears to be suitable and compliant with Principle 1.

Key Provisions

The framework includes provisions for:

• Authorization of banking establishments: The BNA has the authority to grant and withdraw banking licenses.
• Ongoing supervision:
  • The supervisor can set prudential rules.
  • Require information from banks.
  • Conduct on-site inspections.
• Addressing compliance with laws:
  • The supervisor can take prompt remedial actions.
  • Impose sanctions (including revocation of license).
  • Fine banks for non-compliance.
• Legal protection for supervisors: While not explicitly stated, general administrative and civil law precludes lawsuits against individual civil servants for good faith exercise of duties.

Areas for Improvement

However, the text notes that there is no explicit legal provision protecting the supervisory agency or its staff against lawsuits. This means they may be sued in case of wrongful action or omission.

Conclusion

Overall, the assessment is Compliant, with some minor areas for improvement related to explicit protection of supervisors and staff against lawsuits.