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Operational issues in the implementation of risk-based supervision framework

Author

Listed:
  • Ma. Corazon J. Guerrero

    (Bangko Sentral ng Pilipinas)

Abstract

With the objective of the Bangko Sentral ng Pilipinas (BSP) to achieve and maintain a safe and sound banking system, the focus of regulators shifted from traditional supervision to risk-based supervision. This approach calls for changes in the supervisory environment such as enhanced supervisory tools, refocused on-site inspection process, reoriented human resource, and risk-focused prudential regulations. The BSP adopts risk-based supervision to compel banking institutions to be more risk-oriented through the evaluation of management practices, policies, and procedures in the context of managing potential risks. As a result, banking institutions can provide the best banking services and products with the highest return of investment at a minimal risk.

Suggested Citation

  • Ma. Corazon J. Guerrero, 2005. "Operational issues in the implementation of risk-based supervision framework," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 42(1), pages 81-87, June.
  • Handle: RePEc:phs:prejrn:v:42:y:2005:i:1:p:81-87
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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/191/601
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    More about this item

    Keywords

    risk-based supervision; risk-focused supervision; risk-focused examination; risk-based examination;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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