Result Based Management Framework - METAC

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The CBY has an updated regulatory framework that is in line with Basel core
principles for effective banking supervision.
CBY supervisors possess the necessary skills to perform an effective and
prudential supervision of banks’ activities.
CBY has a good regulatory and supervisory framework for overseeing Islamic
banks and financial institutions in Yemen.
Outputs
The main outputs of the TA to enhance the onsite and offsite supervisory functions at the
CBY would be as follows:
Enhance the current banking prudential reports to allow for a better offsite
monitoring and analysis of banks’ risks and financial performance.
Provide on-the-job training to CBY onsite supervisors to train them on the
application of the new onsite inspection manual.
The main regulations that will be needed to enhance the regulatory framework at CBY are
the following: prompt corrective action, liquidity management and measurement,
operational risk measurement and management, risk management, stress testing
guidelines, and corporate governance requirements.
The capacity building activities will be provided through seminars and workshops as well
as on-the-job training in several areas like: offsite supervision, onsite supervision, risk
management, Islamic banking, etc.
METAC will also assist the CBY in establishing a good oversight framework over the
Islamic banking activities in Yemen through:
Developing a separate set of supervisory call reports for Islamic banks.
Enhancing the current manual and practices (or developing new manuals) to take
into account the supervision activities needed over Islamic financial products and
services.
Assist the CBY in developing the necessary regulations for Islamic banking
activities and transactions.