Samoa: Detailed Assessment of Compliance with the Basel Core Principles for Effective Banking Supervision
IMF Staff Country Reports, June 29, 2007
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- Samoa: Detailed Assessment of Compliance with the Basel Core Principles for Effective Banking Supervision
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Bibliographic details
- Published: June 29, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451840766.002
Summary
- This Detailed Assessment of Compliance with the Basel Core Principles for Samoa highlights general preconditions for effective banking supervision.
- The Central Bank of Samoa (CBS) should consider introducing some straightforward specific capital charges for market price risk and foreign exchange risk.
- The CBS should require banks to have in place mechanisms for regularly valuing collateral and assessing the strength of guarantees.
- Several recommendations to further improve the regulatory role of the CBS in accordance with current international standards have been noted and future efforts shall focus on incorporating and developing these as appropriate.
- Publication date: June 29, 2007
Key Findings
- General preconditions for effective banking supervision in Samoa are identified.
- Market price risk and foreign exchange risk are areas where the CBS should consider introducing specific capital charges.
- Collateral valuation and assessment of guarantee strength are not consistently in place and should be required of banks.
- The regulatory role of the CBS requires further improvements to align with current international standards.
Policy Recommendations
- Introduce straightforward specific capital charges for:
- market price risk
- foreign exchange risk
- Require banks to implement mechanisms for:
- regularly valuing collateral
- assessing the strength of guarantees
- Pursue incorporation and development of additional recommendations to strengthen the regulatory role of the CBS in line with international standards.
Subject Areas and Keywords
- Subject: Banking, Basel Core Principles, Capital adequacy requirements, Financial institutions, Financial regulation and supervision, Foreign banks, Internal controls, International banking, Market risk, Revenue administration
- Keywords: Asia and Pacific, asset quality, bank supervisor, banking group accounting policy, Basel Core Principles, Capital adequacy requirements, chief executive, country risk, CR, credit policy, domestic bank, financial condition, Foreign banks, Global, Internal controls, international bank, ISCR, Market risk, ownership interest, parent bank supervisor, risk management, risk profile