What constitutes supervision and regulation for the financial system?
Banking supervision and regulation provides a forum for regular cooperation on banking supervisory matters; its objective is to enhance understanding of key supervisory issues and improve the quality of banking supervision
The core principle for effective banking supervision addresses supervisory requirements relating to banking licensing. The …show more content…
Structural Impediments to Supervision: The licensing procedure should include an assessment of the ownership structure to determine whether there are elements that will prevent the supervisor from carrying out effective supervision.
The following would indicate that a structure is likely to make it difficult, if not impossible, to carry out effective supervision: * a complex structure that prevents a clear view of the entire business of the group * an inability to determine ultimate beneficial ownership * significant parts of the group operate in jurisdictions where secrecy provisions limit access to information * significant parts of the group's operations are