As one of the Bank’s core departments, the Bank Supervision Department (BSD) is fully committed to achieving its mission of promoting the soundness of the domestic banking system and to contribute to financial stability.
Main functions of the BSD
The various divisions within the BSD and their respective key functions are as follows:
Research and Information: Research emerging issues in the local and international financial stability arena, and compile and present the findings in the biannual Financial Stability Review.
Consolidated Supervision: Supervision of banking groups on a consolidated basis with a view to appropriately supervising all material risks to which the banking group may be exposed.
Review Team: Conduct specific reviews on banks and/or the banking sector to assess compliance with the Banks Act, 1990, the Regulations relating to Banks and other relevant legislation such as the Financial Intelligence Centre Act, 2001.
Analysis: Analyse the financial and risk information of banks, ensure compliance with prudential requirements, and verify that banks adhere to regulatory capital requirements.
Risk and Quantitative Specialists: Assess the adequacy of risk management and compliance with the Banks Act, 1990, assess appropriateness of the level of capital held for Pillar 1 risks (i.e. minimum capital requirements in respect of credit risk, market risk and operational risk exposures) and process banks’ applications to use more advanced models for calculating regulatory capital requirements.
Capital Management: Review banks’ internal capital adequacy assessment processes (ICAAPs) and provide input on banks’ applications for the issuance of capital.
Disclosure and Other Risks: Analyse and assess banks’ adherence to minimum regulatory disclosure requirements.
Co-operative Banks: Register, de-register and supervise co-operative banks in terms of the Co-operative Banks Act, 2007 and the Regulations relating to Co-operative Banks.
Regulations Division: Provide legal administration services (e.g. processing applications of prospective banks), and appropriately respond to activities of unregistered persons and institutions (e.g. illegal deposit-taking).
Policy and Regulatory Specialists: Ensures that the legal framework for the regulation and supervision of banks and banking groups remains relevant and current and aligned with regulatory, supervisory and market developments at a domestic and international level.