CBN To Assess Risks Of Banks With Cross-border Expansion




Whatsapp News

The Central Bank of has said will introduce guidelines to assess the level of exposure of international authourisation are engaging in cross broader expansion.

 

This would enable to monitor the risks of their operations in the countries where they are operating.

 

said this in its report on ‘Monetary, credit, trade and exchange policy guidelines for fiscal years 2020/2021’, on cross- supervision.

Part of the report read, “To further strengthen the regulation and supervision of cross- , the shall commence the conduct of country risk assessment in respect of embarking on cross- expansion during the 2020/2021 fiscal years.

“To this end, guidelines on country risk assessment shall be issued to the industry and all international authorisation shall be required to comply.”

It added, “The guidelines aim at setting supervisory expectations regarding the of country risk by banks and is applicable to all banks international activities and exposure to country and transfer risk.

“The supervisory authority shall apply to these guidelines based on the nature of a bank’ international activities and cross-border exposures, as well as the risk in countries where the bank has or plans to have operations.

“The review of banks of country risk by the will be aimed at assessing the level of risk arising from their international activities and exposures and the effectiveness of their internal and controls for the of exposure to country and transfer risk.”

It also said to determine its level of compliance with the Basel Core Principles for Effective Banking Supervision, the would carry out a self-assessment of compliance with the BCPs preparatory to the Financial Sector Assessment Programme.

 

Source