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Supervision Credit Institutions

Supervision - Credit Institutions

The State Ordinance on the Supervision of the Credit System  (AB 1998 no. 16) provides the CBA with a solid base for supervising credit institutions. CBA’s supervision of credit institutions aims primarily at maintaining the stability and integrity of the financial system and safeguarding the interests of the deposit holders. Mainly via off‐site surveillance and periodic on‐site examinations, the CBA conducts ongoing oversight over the credit institutions.
  1. Admission / market entry - Credit institutions need a license from the CBA before they can start their activities. Reference is also made in this regard to the admission policy for credit institutions
  2. Law and regulations - Credit institutions in the possession of a license from the CBA have to comply, on an ongoing basis, with the supervisory laws and regulations applicable to them.
    • Supervisory laws applicable to credit institutions: 
      • State Ordinance on the Supervision of the Credit System (SOSCS)
      • State Decree stipulation of equity SOSCS
      • State Decree containing general measures of July 13, 2000 for the implementation of article 1, second paragraph of the SOSCS
      • Ministerial regulation of April 16, 2009 for the implementation of article 48, first paragraph of the SOSCS.
    • Regulations applicable to credit institutions:
      • Prudential Supervision Manual for Credit Institutions (including Business Continuity Management policy paper and Technology Risk  Management policy paper)
      • Directive on Sound Business Operations
    • Please visit the CBA’s webpage on the AML/CFT framework and the Financial Sanctions Regulations for an overview of the applicable laws and regulations in the area of AML/CFT.
  1. Enforcement - In cases where the CBA identifies a situation of noncompliance with the applicable supervisory laws and regulations, formal or informal (a normative conversation or a written warning) measures are considered. The decision whether to apply formal or informal measures depends, among other things, on the seriousness of the case. Please refer to the CBA’s Enforcement policy for more information.

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