As part of its mission to ensure the stability of the financial system, the Superintendency of Banks (SB) launched a new risk-based banking supervision framework, which strengthens surveillance and early warning mechanisms.
In this way, the institution achieves its strategic goal of moving away from compliance-based supervision to implement a risk-based model, which is more far-reaching because it is based on a forward-looking vision.
Among the improvements applied to the supervisory framework are the incorporation of new principles of good banking practices, the expansion of the criteria for evaluating the risk profiles of institutions, the qualification of the prevention of money laundering and terrorist financing as a significant activity, and the inclusion of liquidity as a financial resource, among others.
The framework was presented during a virtual seminar led by the Superintendent of Banks, Alejandro Fernández W., in which 508 representatives of supervised financial intermediaries and their associations participated.
This methodology is based on a proactive approach instead of a reactive one, taking into account the evaluation of the impact of risks and the probability of their materialization.
“With the maturity of the processes we are implementing, great benefits will be obtained related to the added value of supervision and the incorporation of banking practices aligned with international standards of the highest level,” said Elbin Francisco Cuevas, SB’s Deputy Manager of Supervision, at the activity.
For the improvement of the supervision methodology, whose previous version dated back to 2013, the SB was accompanied by the Toronto Centre, an international reference institution in the field of banking supervision.
In addition to updating the framework, an extensive training program was developed for the institution’s technical teams.
This ambitious project included the implementation of a pilot program that ran from May to August 2023, with the participation of a multipurpose bank, a savings and loan association and a savings and loan bank.
For its development, the SB formed the Methodology and Implementation Group (GMI), whose role is to keep updated the criteria, guidelines and other documents necessary to carry out effective supervision and promote good banking practices.
The updated supervisory framework is available on the SB’s web portal.
Source:presidencia.gob.do
