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Banking Supervision Agency Equipped to Handle Special Situations

The Bank of the Netherlands Antilles (BNA) has a robust legal framework in place to ensure effective banking supervision. Additionally, the agency has sufficient resources to hire outside experts, provide regular training opportunities for its staff, and equip them with the necessary tools to review the banking industry.

Appointment and Removal of Head of Supervisory Authority

According to Article 18 of the BNA Statute of 1985, the head of the supervisory authority is appointed, suspended, and removed by the Governor of the Netherlands Antilles on recommendation of the Board of Supervisory Directors. While there is no fixed term of office for the head of the agency, public disclosure of reasons for removal is required.

Funding and Budget

The BNA’s budget is funded through fees charged to the supervised sector, as well as its own profits. The agency has sufficient resources to hire qualified personnel and annually budgets money for training and equipment of the banking supervision department.

Training Opportunities

Each professional staff member receives two weeks of external training annually, typically courses offered by U.S. regulators such as the Federal Reserve and the Federal Deposit Insurance Corporation.

Equipment and Travel Budget

The BNA also has a budget for computers and other equipment necessary for its staff to review the banking industry. Additionally, there is a travel budget that allows for on-site examinations.

While there is no explicit provision providing immunity for supervisors against lawsuits, general administrative and civil law precludes lawsuits against individual civil servants on the basis of good faith exercise of their duties.

Powers and Authorities

The BNA has the authority to:

  • Grant and withdraw banking licenses
  • Set prudential rules administratively
  • Require information from banks in the form and frequency it deems necessary
  • Address compliance with laws and safety and soundness concerns, including:
    • Imposing fines for late reporting
    • Giving legally binding instructions to banks
    • Appointing silent trustees
    • Requesting emergency measures from the court

Conclusion

Overall, the BNA’s legal framework and resources position it well to effectively supervise the banking industry in the Netherlands Antilles.