Financial Supervisory Bodies


Modern Banking system presents major challenges to the national system and stability.

There are number of issues to consider.

1.  international nature of the financial system, meaning that often many banks located within the borders of one national country, are indeed part of the greater entity, often investing and borrowing amongst each other.  Should you monitor the capital flows, and impose limits?  If so, how can you legally do it.

2.  calculation of capital and of asset risk, and the Basel modelling, including current Basel 2, and planned introdcution of Basel 3.  How will this benefit your financial system?   Do the local banks have access to technology to make full use of Basel 2, and planned Basel 3?

3.  FX imbalances, and solution at solving them. Is foreign currency borrowing and lending a positive or negative element?

4.  Deposits, and deposit guarantee schemes. Ever growing availability of structured investment products, including structured deposits.

5.  Accounting standards.  Valuation techniques.  Fair value accounting vs accrual accounting - are you sitting on the time bomb?

6.  Monitoring and responsibility.  Establishing the framework, where banks are allowed to flourish, yet where the risks are kept under strict control.

Vision Finance has been involved in number of discussions with various Central Banks concerning the stability of the financial systems, and has a significant insight into likely concerns that Financial Supervisory Bodies have.