| | |
| Foreword |
| The twenty-five Principles |
| Section I | Introduction |
| Section II | Preconditions for Effective Banking Supervision |
| Section III | Licensing Process and Approval for Changes in Structure |
| A. Ownership structure |
| B. Operating plan, systems of control and internal organisation |
| C. Fit and proper test for directors and senior managers |
| D. Financial projections including capital |
| E. Prior approval from the home country supervisor when the proposed owner is a foreign bank |
| F. Transfer of a bank's shares |
| G. Major acquisitions or investments by a bank |
| Section IV | Arrangements for Ongoing Banking Supervision |
| A. Risks in Banking |
| B. Development and Implementation of Prudential Rules and Requirements |
| 1. Capital adequacy |
| 2. Credit risk management |
| 3. Market risk management |
| 4. Other risk management |
| 5. Internal controls |
| C. Methods of Ongoing Banking Supervision |
| 1. Off-site surveillance |
| 2. On-site examination and/or use of external auditors |
| 3. Supervision on a consolidated basis |
| D. Information Requirements of Banking Organisations |
| 1. Accounting standards |
| 2. Scope and frequency of reporting |
| 3. Confirmation of the accuracy of information submitted |
| 4. Confidentiality of supervisory information |
| 5. Disclosure |
| Section V | Formal Powers of Supervisors |
| A. Corrective Measures |
| B. Liquidation Procedures |
| Section VI | Cross-border Banking |
| A. Obligations of Home Country Supervisors |
| B. Obligations of Host Country Supervisors |
| |
| Appendix I | Special Issues Related to Government-owned Banks |
| Appendix II | Deposit Protection |
