Result Based Management Framework - METAC

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In order to align its supervisory framework with its regulations and with best practices,
the PMA is in need to update its procedures and supervision manuals and make them
more risk-oriented.
Hence, the main objective of the TA by METAC to the PMA would be to continue
developing a new risk-focused system of onsite and offsite supervision that allows for an
effective prudential supervision and monitoring of the risk profile of banks and for a
better analysis of the soundness and stability of the overall financial sector.
Outcomes
The PMA has a new risk-focused supervision manual that is tailored to the risk
profile of each banking institution and that takes into consideration the latest
developments in banking supervision.
A new improved CAMELS 8 rating methodology is adopted, which builds on the
work of the onsite and offsite branches of banking supervision and reflects the
effective coordination between those two functions.
Outputs
A new risk-focused supervisory manual is delivered to the PMA, discussed with
them and finalized.
A series of training sessions, including on-the-job training, is delivered to the
PMA supervisors in order to explain the new risk-focused approach and manual
and to assist in the analysis of banks’ financial position.
An updated methodology for CAMELS ratings, possibly including a framework
for CAMELS-based enforcement framework, is prepared and submitted to the
PMA for discussion and approval. Training is also provided to supervisors on
applying the new CAMELS methodology.
Risks /Assumptions
Overall political situation remains stable and security constraints remain within tolerable
levels.
PMA senior management approves the new manual and methodology in a timely manner
and takes effective measures to enforce it at the level of BSD.
8 Acronym for prudential ratios: Capital adequacy, Asset quality, Management, Earnings, Liquidity, and
market Sensitivity.