Areas for strengthening include: (i) preconditions for effective crisis management; (ii) development of a crisis management framework; and (ii) preparation of a step-by-step plan for meeting the crisis. Reforms are needed in the institutional and legal framework, facilities for liquidity provision, and bank resolution procedures. While reported capital levels appear adequate, there is a concern that those levels are overstated. A priority action for the NRB is to initiate a review of bank capital levels to ensure that reported capital levels are correct and appropriate.
The current Prompt Corrective Action Framework (PCAF) refers only to required capital ratios. The NRB should have a PCAF for additional supervisory requirements that may prove to be better predictors of emerging banking distress, including liquidity ratios. Reporting by banks and financial institutions remains cumbersome. Moreover, the financial institution report with much longer lags and sometimes in inconsistent formats, making bank comparisons and peer analysis difficult and inefficient.
#WB #ContingencyPlanning #2010
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Publisher:
WB
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(2010
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Type / Script:
Official Document
in English
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Keywords:
INDUSTRIAL MANAGEMENT, CORPORATE STRATEGIES, BUSINESS ENTERPRISE BRANCHES, CORPORATIONS, MANAGEMENT, LEGAL, LIQUIDITY, MANAGEMENT POLICY
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Thematic Group:
UN
:
International Peace and Security
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Thesaurus:
05.02.00
- Management
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Reference Link:
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