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In West Bank and Gaza,
METAC assisted the authorities
in: (i) adding comprehensive
and detailed data to empower
users of the credit registry
system; (ii) automating the
credit registry for more efficient
and responsive system; and (iii)
adding credit information on
MFI to the Palestine Monetary
Authority Credit Registry
(PMACR) database. Additional
activities planned include the
development of an internal
credit scoring.
Off-site supervision
Off-site supervision activities should
be focused on financial analysis,
monitoring and surveillance of banks, as well as follow-up on on-site examinations. Developing
new bank returns and supervisory call reports is essential for enabling the banking supervision
department to adopt monthly indicators and produce annual off-site reports. After finalizing the
financial statements and call reports (bank returns) in line with the requirements of the Basel
Committee on banking supervision and international best practices, METAC provided training to
the Central Bank of Iraq (CBI) examiners on how to use these statements and reports in
analyzing banks’ positions and risks while conducting off-site supervision.
Prudential regulations
The development of a comprehensive legal framework is crucial for any banking supervision
reform. METAC assisted in the development of a number of prudential banking regulations in
line with the Core Principles for effective Banking Supervision and Basel requirements.
Short-term expert, Jim Aziz (standing far left) and Mr. Ali
Faroun (sitting), deputy director banking supervision department
with the PMACR team
In Iraq, METAC trained the CBI examiners on the newly developed prudential regulations
covering: risk management, internal audit, internal control, corporate governance, credit risk
and large exposures, loans classification, capital adequacy ratio and components, market risk
and operational risk, Foreign Exchange (FX) positions and provisions for loans.
In Syria, METAC assisted the Central Bank of Syria (CBS) in developing a draft resolution
on "management assessment" and "country risk", covering the elements of sound country risk
management process, inspection procedures, and reporting requirements. In addition,
METAC updated the instructions on "Disclosures requirements for preparing annual and
interim financial statements by banks" according to the International Accounting Standards
(IAS) and International Financial Reporting Systems (IFRS).