Senior officials responsible for banking supervision or financial stability issues in central banks and authorities with formal responsibility for the prudential supervision of banking business where this is not the central bank.

As the Central Bank of the country, the Bank of Zambia administered the Bank of Zambia and Foreign Exchange Acts and assisted the Government in regulating and supervising the operations of the Commercial Banks under the Banking Act.

But, while putting the ECB in charge of banking supervision solves one problem, it creates another can national authorities still be held responsible for saving banks that they no longer supervise?

The list of the designated commercial banks shall be determined and publicly announced by the securities regulatory agency under the State Council jointly with the banking supervision and management organs of the State Council.

Here, the European System of Central Banks could serve as a model. Centralized financial supervision would avoid the need for banks to duplicate reports to different authorities, allow financial rules and supervisory practices to be harmonized, and eliminate distortions to competition.

If banks are regulated at the national level, but do business internationally, national regulatory authorities have a permanent incentive to set lax standards to avoid driving business to other countries and to lure it from them instead. Regulatory competition thus degenerates into a race to the bottom, since the benefits of lax regulation translate into profits at home, while the losses lie with bank creditors around the world.

By tying senior managers pay to the bank s stability, the financial sector, advocates argue, would be forced to police itself. This incentive based regulation could bolster economic stability more effectively than expecting regulators to keep pace with banks risky activities.

Rural Development (Laos) total village development managing and monitoring weaving materials bank and cattle bank.

The Law on the System of Payments and the monitoring authority of the Central Bank are sufficient to carry out such supervision.

Where any designated commercial bank has any of the above acts and is under any serious circumstances, its businesses of trading, clearing and capital management shall be ordered to be suspended or terminated by banking regulatory agencies of the State Council.

Appropriate regulation including regulation of rating agencies would most likely make traditional banks popular again. A reconsideration of banks limited liability charter would go even further in restoring credibility.

To enforce the statute, regulators periodically examine banks for CRA compliance. To hone in on the regulatory enforcement effect, the recent study compares the behavior of banks that are undergoing examination (which takes place over several quarters) to that of banks that are not undergoing examination in a particular tract in a particular month.

The reporter learned from the competent department that the private bank preparation scheme of Shandong Province obtained approval of the China Banking Regulatory Commission (CBRC) in principle, while Lanhai Bank is expected to become the first private bank in Shandong Province.

That happened because European bank regulation is still characterized by a race to the bottom. Colleges of regulators, the supposed solution, are inadequate.

But Europe s policymakers claim to be making progress toward a so called banking union, which means collective banking supervision, rather than a merger of banks themselves. In September, the European Commission announced a plan to make the European Central Bank the supervisor of all 6,000 of Europe s banks.

Banks are overseen by a home regulator in their country of incorporation, and by a series of host regulators where they operate. Home regulators and lenders of last resort are increasingly worried about their potential exposure to losses in banks overseas operations.

So, is there an alternative to the old fashioned monitoring of loans by banks?

It was emphasized that the contracts with the custodians made both the custodian and sub custodian banks liable for this type of loss.

The National Bank of the Republic of Belarus monitors banks and non bank credit and financial institutions

Proponents hope that this would soften the systemic cost of bank failure. They also hope that the guarantees would motivate the bondholders to monitor banks activities and pressure bank managers to limit their risky operations.

Indeed, the plethora of separate banking regulators had created opportunities for banks to arbitrage the system in search of a more indulgent approach to capital. Likewise, the lack of a federal insurance regulator had left AIG regulated by the Office of Thrift Supervision (OTS) and the New York State Insurance Department, which proved to be a wholly inadequate arrangement.

Article 7 The securities regulatory agency under the State Council, the People's Bank of China and other financial regulatory authorities under the State Council should establish information sharing mechanism of supervision and administration over securities firms.

For example, they could tighten the qualifications needed to become a bank director (in the United States, for example, the requirements are not serious). Instead, regulators stand idly by while bank boards remain self perpetuating clubs, with membership regarded as little more than so much social plumage.

Central bankers in Europe have always resented the narrow monetary policy mandate given to the ECB under the Maastricht Treaty. Banking supervision was not included among the ECB s objectives, though one article of the treaty gives the system of European central banks as a whole the task of contributing to effective supervision.

The answer may indicate what future awaits banks. Some regulators were irresponsible for not anticipating the rational profit maximizing behavior of institutions with a limited liability charter and of executives effectively protected from failure.

China wants to build up its banks international operations. And the British are welcoming an expansion of these activities in London offering to treat Chinese banks operating there as branches (subject to Chinese regulation) rather than as subsidiaries (subject to British regulation).

Building support for legislation to simplify the biggest banks would greatly strengthen the hand of those regulators who want to require more shareholder equity and better regulation for the shadows. These policies are complements, not substitutes.

The clearinghouse also enhances transparency, because it can report its aggregate exposures to the regulator, who is better positioned to regulate a central clearinghouse than to regulate many opaque banks. This, too, this should strengthen the financial system.

With regard to banking, he noted that ISAR apos s discussions had been enriched by a special banking forum of high level bank managers, bank directors, bank regulators and bank auditors.

How might these laudable objectives be achieved? The European Commission has argued that a fully fledged banking union would need to rest on four pillars a single deposit protection scheme covering all EU (or eurozone) banks a common resolution authority and common resolution fund, at least for systemically important and cross border banks a single European supervisor for the same banks and a uniform rule book for prudential supervision of all banks in Europe.

Offshore Group of Banking Supervisors

They need to work with boards and senior management to ensure that major reforms are implemented and then consistently applied. Regular exchanges of views between oversight officials and the banks should be regarded as a crucial component of this process.

Appropriate regulation of developing country banking can also mitigate some of the problems of private capital flows.

It must ensure that national interests do not undermine the integrity of the cross border bank groups. Ultimately, we need a Europe wide deposit insurance and bank resolution authority that can take over and restructure failed banks.

The securities regulatory agency under the State Council can suggest the banking regulatory agencies of the State Council to give penalties to the person in charge and any other person directly responsible according to laws.

Basel Committee on Banking Supervision

Examiners from the Bank Supervision Division conduct regular on site examination to that particular bank offering the service.

Such as the October 2004 standard of the Basel Committee on Banking Supervision on consolidated know your customer risk management (www.bis.org pub bcbs110.pdf).

The latest example highlighting this flaw is Dexia, the Belgian French banking group that failed in 2011 just after passing the European Banking Authority s stress test with flying colors. The stunning opacity of solvency ratios encouraged regulators to turn a blind eye to banks excessive risk taking.

Act 95 011 on regulation of the banking profession, by which the Central Bank exercises oversight over banks and financial institutions.

The legislative infrastructure has been strengthened by provisions for the regulation of the industry through the supervision of company and trust managers and the control of banking activities.

British legislators will need to be satisfied that any new regime captures the right people, in the right way. However politically appealing the idea of rogue bankers behind bars might be, putting them there is likely to remain very challenging in practice.

The latter is responsible for their supervision and regulation.

The activities of non bank credit and financial institutions are regulated by section IV of the Banking Code.

(a) Bank accounts administered