COURTNEY CHRISTIE-VEITCHCARTAC

Credit Union Regulator’s Meeting

and WorkshopKingstown, St. Vincent

August 20-22, 2014

Update on Basel II Implementation in the Caribbean: Convergence of BCPs and

Basel II

Background: The BCPs

Core Principles for Effective Banking Supervision: Flexible and globally applicable Based on the concept of proportionality Minimum standards for sound prudential regulation and

supervision for banks and banking systems and benchmark for Credit Union Supervision

Originally issued by BCBS in 1997

Uses Used by countries to assess the quality of supervisory

systems Used to identify future work to achieve baseline level for

sound supervisory practices Used by IMF and World Bank for FSAP purposes

Background: The BCPs

Structure of BCPs Supervisory powers, responsibilities and functions

Objectives Independence Powers Responsibilities

Prudential regulations and requirements/Supervisory expectations of banks Adequate Capital to cover risks Good corporate governance Good risk management processes and internal controls Compliance with supervisory standards

Prudential Supervision and Regulation

Core Principles 1 – 13

Basel Core Principles Supervisory Powers, Responsibilities and

Functions

Basel Core Principles Supervisory Powers, Responsibilities and

Functions

Basel Core Principles Supervisory Powers, Responsibilities and

Functions

Basel Core Principles Supervisory Powers, Responsibilities and

Functions

Prudential Supervision and Regulation

Core Principles 14 – 29

Basel Core Principles Prudential Regulations and Requirements

Basel Core Principles Prudential Regulations and Requirements

Basel Core Principles Prudential Regulations and Requirements

Basel Core Principles Prudential Regulations and Requirements

Basel Core Principles Prudential Regulations and Requirements

Basel Core Principles Prudential Regulations and Requirements

The Basel Capital Framework

Comparison between Basel II and the Basel Core Principles (Revised and 2006 Versions)

Supervisory Powers, Responsibilities and Functions

Supervisory Powers, Responsibilities and Functions

Supervisory Powers, Responsibilities and Functions

Prudential Regulations and Requirements

Prudential Regulations and Requirements

Prudential Regulations and Requirements

The End

Thanks for your participation

Any Questions??