Steps to Improve Prudential Supervision and Regulation in Malaysia, Korea, and Thailand
|Development of an overall plan and/or strategy for the supervision and regulation of the industry||Yes Masterplan1||Under consideration2||Yes3|
|Steps to develop and implement consolidated supervision||In process4||Under consideration5||Under consideration6|
|Steps to develop and implement risk-based supervision||Yes7||Yes8||Yes9|
|Requiring banks and holding companies to develop and implement formal risk management processes||Yes10||Unknown11||Early stages of Development12|
The Financial Sector Masterplan was released in March 2001; it sets broad goals for the supervision and regulation of the industry.
Through the refinancing of a World Bank loan, Korea is in the process of securing an outside consulting firm to assist in Developing a plan to bring its supervision and regulation function in step with current worldwide standards.
A complete re-engineering of the supervision group is under way. As part of the re-engineering process, actions to ensure compliance with international standards and the Core Principles are under way.
Bank Negara Malaysia is moving toward consolidated supervision. A change to existing banking law with be required to give Bank Negara Malaysia the authority.
Consolidated supervision is to be considered as part of an overall plan.
Through the proposed Financial Institutions Law and new supervisory policies and procedures, consolidated supervision is being considered.
Risk-based supervision was in the implementation stage when the crisis emerged, and is now being reintroduced into the examination process.
Risk-based supervision with be part of an overall plan for the supervision and regulation of the financial services industry.
Risk-based supervision approach is embodied in all new policies, procedures, regulations, and other supervisory guidelines that are developed. A risk-based supervisory approach for on-site examination is in the testing stage.
Bank Negara Malaysia is moving the industry toward formalized risk-management processes. This is evidenced by the implementation of mandated risk-management practices for derivatives, liquidity, and credit.
The consultant’s plan does not specifically address this issue
New regulations to accompany the proposed Financial Institutions Law with require appropriate risk management processes.