{
  "title": "Foreign Bank Supervision and Challenges to Emerging Market Supervisors",
  "publication": "IMF Working Papers, May 1, 2004",
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  "summary": "The increased presence of foreign banks in a country's domestic banking system necessitates the development of effective cross-border prudential supervision where the consolidated supervision is the essential element.",
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    {
      "heading": "Summary",
      "content": "- The increased presence of foreign banks in a country's domestic banking system necessitates the development of effective cross-border prudential supervision where the consolidated supervision is the essential element.\n- The paper presents foreign bank supervision in terms of:\n  - division of responsibilities between the home and host countries,\n  - consolidated supervision,\n  - quality of home-country supervision,\n  - memoranda of understanding (MOUs), and\n  - \"ringfencing\" of banks.\n- The paper discusses a number of challenges which foreign banks bring to emerging market banking supervisors.\n- The paper also provides surveys of country cases."
    },
    {
      "heading": "Major themes and analysis",
      "content": "- Division of responsibilities between home and host countries is a central element in supervising foreign banks operating across borders.\n- Consolidated supervision is emphasized as the essential supervisory approach for cross-border banking groups.\n- The quality of home-country supervision materially affects the effectiveness of host-country oversight of foreign bank affiliates.\n- Memoranda of understanding (MOUs) are discussed as tools to facilitate cooperation and information-sharing between supervisory authorities.\n- \"Ringfencing\" of banks is examined as a supervisory and policy response to cross-border risks."
    },
    {
      "heading": "Challenges to emerging market supervisors (enumerated)",
      "content": "- Increased presence of foreign banks introduces cross-border prudential complexity that requires enhanced supervisory frameworks.\n- Host-country supervisors face limitations when home-country supervision quality is weak or when cross-border cooperation is insufficient.\n- Practical difficulties arise in implementing consolidated supervision for foreign banking groups operating in multiple jurisdictions.\n- The need for formalized cooperation mechanisms (e.g., MOUs) is highlighted to manage supervision, crisis management, and resolution across borders.\n- \"Ringfencing\" measures present trade-offs for host and home supervisors and can complicate consolidated supervisory approaches."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Strengthen consolidated supervision frameworks as an essential element of cross-border prudential oversight.\n- Clarify and codify the division of responsibilities between home and host supervisors to reduce supervisory gaps.\n- Enhance assessment and monitoring of the quality of home-country supervision when foreign banks operate domestically.\n- Use memoranda of understanding (MOUs) and other cooperation agreements to support timely information-sharing and coordinated supervision.\n- Consider implications and prudent design of \"ringfencing\" policies to balance domestic financial stability concerns with cross-border supervisory effectiveness."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Author: In W Song\n- Date: May 1, 2004\n- Series: IMF Working Papers\n- Working Paper No.: 2004/082\n- Issue: 082\n- Volume: 2004\n- Pages: 52\n- DOI: https://doi.org/10.5089/9781451850475.001\n- Stock No: WPIEA0822004\n- ISBN: 9781451850475\n- ISSN: 1018-5941\n- Subject: Bank supervision, Banking, Consolidated banking supervision, Financial conglomerates, Foreign banks\n- Keywords: bank, country, establishment, parent bank, procedure, WP\n\nSource: Foreign Bank Supervision and Challenges to Emerging Market Supervisors — IMF Working Paper by In W Song, May 1, 2004.\n\n---\n\n Content in this bundle\n\n- wp0482\n  - wp0482 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0482 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/foreign-bank-supervision-and-challenges-to-emerging-market-supervisors-17346"
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    "Authors: In W Song",
    "Published: May 1, 2004",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451850475.001",
    "The increased presence of foreign banks in a country's domestic banking system necessitates the development of effective cross-border prudential supervision where the consolidated supervision is the essential element.",
    "The paper presents foreign bank supervision in terms of:",
    "The paper discusses a number of challenges which foreign banks bring to emerging market banking supervisors.",
    "The paper also provides surveys of country cases.",
    "Division of responsibilities between home and host countries is a central element in supervising foreign banks operating across borders.",
    "Consolidated supervision is emphasized as the essential supervisory approach for cross-border banking groups.",
    "The quality of home-country supervision materially affects the effectiveness of host-country oversight of foreign bank affiliates.",
    "Memoranda of understanding (MOUs) are discussed as tools to facilitate cooperation and information-sharing between supervisory authorities.",
    "\"Ringfencing\" of banks is examined as a supervisory and policy response to cross-border risks.",
    "Increased presence of foreign banks introduces cross-border prudential complexity that requires enhanced supervisory frameworks.",
    "Host-country supervisors face limitations when home-country supervision quality is weak or when cross-border cooperation is insufficient.",
    "Practical difficulties arise in implementing consolidated supervision for foreign banking groups operating in multiple jurisdictions.",
    "The need for formalized cooperation mechanisms (e.g., MOUs) is highlighted to manage supervision, crisis management, and resolution across borders.",
    "\"Ringfencing\" measures present trade-offs for host and home supervisors and can complicate consolidated supervisory approaches.",
    "Strengthen consolidated supervision frameworks as an essential element of cross-border prudential oversight.",
    "Clarify and codify the division of responsibilities between home and host supervisors to reduce supervisory gaps.",
    "Enhance assessment and monitoring of the quality of home-country supervision when foreign banks operate domestically.",
    "Use memoranda of understanding (MOUs) and other cooperation agreements to support timely information-sharing and coordinated supervision.",
    "Consider implications and prudent design of \"ringfencing\" policies to balance domestic financial stability concerns with cross-border supervisory effectiveness.",
    "Author: In W Song",
    "Date: May 1, 2004",
    "Series: IMF Working Papers",
    "Working Paper No.: 2004/082",
    "Issue: 082",
    "Volume: 2004",
    "Pages: 52",
    "DOI: https://doi.org/10.5089/9781451850475.001",
    "Stock No: WPIEA0822004",
    "ISBN: 9781451850475",
    "ISSN: 1018-5941",
    "Subject: Bank supervision, Banking, Consolidated banking supervision, Financial conglomerates, Foreign banks",
    "Keywords: bank, country, establishment, parent bank, procedure, WP",
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