In 2020, the National Bank will continue to make effort to ensure prudential regulation through the exhaustive analysis of internal governance and internal control and risk management procedures and by assessing capital adequacy and liquidity. There are seven key areas on which the Bank will focus this year in the bank supervision process, IPN reports.
In a press release, the Bank says that this year the banks are to present the first reports on the assessment of adequacy of internal liquidity, which will become a new component of the central bank’s supervision and assessment process. There will be assessed the solidity, efficiency and comprehensive character of the framework for managing liquidity and financing risks at banks.
In 2020, the Bank will step up efforts to implement Moneyval’s recommendations with a view to continuing the impledmentation of international standards on the prevention and combating of money laundering and terrorism financing. Effort will be further made to continue and improve cooperation in the given sector between the institutions taking part in the supervision of reporting institutions.
The evolution of loans for building/purchasing homes and of consumer loans provided to private individuals will also be monitored. The central bank will intensify field inspections to assess credit risks, check the portfolio of loans released in the given sectors, especially the release and monitoring procedures, and will monitor how the banks implement the strategies for diminishing nonperforming loans.
The Bank will also check the inherent operational risk and the activity of managing the operational risk. It will assess the measures taken by banks to increase physical security and the remedying plans for determining the credibility of the key components of these plans.
Given the objective to promote cash-free payments, the Bank will determine the number of payment orders initiated electronically by bank clients and the measures taken by the banks to increase the number of electronic payments.
