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- •Рецензенты:
- •Оглавление
- •Введение…………………………………………………………………....4
- •Chapter 1. The European Union………………………………………..........6
- •Unit 1.1. The European Union and Its Bodies……………………………........6
- •Введение
- •Chapter 1. The European Union Unit 1.1. The European Union and Its Bodies
- •Text-study
- •I. Learn the following words
- •II. Complete the sentences with suitable words from the box
- •III. Answer the following questions
- •IV. Translate into English
- •V. Fill in the blanks in the text with suitable prepositions
- •VI. Insert the articles where necessary
- •VII. Translate the following text from English into Russian in writing
- •VIII. Explain the italicized grammar constructions in the following sentences
- •IX. Give Russian equivalents for the following words and phrases used in the text:
- •X. Render the text “The European Union” using the plan
- •XI. Work as one group. Point out the main periods in the development of the eu
- •Unit 1.2. The European Commission Text The European Commission and Its Authorities
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions
- •III. Complete the sentences with suitable words from the box
- •IV. Fill in the blanks with articles if needed
- •V. Fill in the blanks with prepositions if needed
- •VI. Explain the italicized grammar constructions in the following sentences
- •VII. Read and translate the following text into Russian in writing
- •VIII. Translate into English
- •IX. Meet as one group. One of you should lead the meeting. Decide how the problem of effective eu budget management can be minimized
- •X. Study the article in several groups. Choose one of the situations and brainstorm the points
- •Unit 1.3. The European Union and its Members Text 1 The European Union and Britain
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions
- •IV. Fill in the blanks with articles if needed
- •V. Fill in the blanks with suitable prepositions
- •VI. Explain the italicized grammar constructions in the following sentences
- •VII. Translate the text from English into Russian in writing
- •VIII. Read and translate orally the following text
- •IX. Translate into English
- •X. Study the article in several groups. Choose one of the situations and brainstorm the points
- •XI. Meet as one group. One of you should lead the meeting. Decide how the problems of Gateway cities can be minimized Text 2 Sustainable Convergence or Resistance?
- •Text-study
- •Learn the following words
- •Answer the following questions
- •Give Russian equivalents for the following words and phrases used in the text:
- •Translate into English
- •Fill in the blanks in the text with suitable prepositions
- •Insert the articles where necessary
- •Explain the italicized grammar constructions in the following sentences
- •Summarize the text, using the words and phrases given below:
- •Study the text in several groups and try to find arguments to support the following point of view:
- •Meet as one group. One of you should lead the meeting. Develop the following idea:
- •Text 3 Advantages of Spanish Membership in the eu
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions
- •III. Complete the sentences with suitable words from the box
- •IV. Fill in the blanks with articles if needed
- •V. Fill in the blanks with prepositions if needed
- •VI. Explain the italicized grammar constructions in the following sentences
- •VII. Translate from English into Russian in writing
- •VIII. Comment on the sentences
- •IX. Translate into English
- •X. Render the text “Advantages of Spanish Membership in the eu”
- •Text 4 The Netherlands in the European Union
- •1.The Dutch model of economy
- •2.Types of capitalism
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions
- •III. Complete the sentences with suitable words from the box
- •IV. Fill in the blanks with articles if needed
- •V. Fill in the blanks with suitable prepositions
- •VI. Give Russian equivalents for the following words and phrases:
- •VII. Translate the following text into Russian in writing
- •VIII. Summarise the text using the words and phrases given below
- •IX. Translate the following sentences into English
- •X. Meet as one group. One of you should lead the meeting. Supply details to prove the following:
- •XI. Study the text in several groups. Dwell upon the barriers that play a key role in keeping the Netherlands behind other countries
- •XII. Do you agree with the statement that "a synthesis of the Anglo-Saxon and Rhineland models ought to be possible"? Prove your point of view
- •Text 1 Bilateral Agreements between the European Union and the usa
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions
- •III. Complete the sentences with suitable words from the box
- •IV. Fill in the blanks with articles if needed
- •V. Fill in the blanks with suitable prepositions
- •VI. Explain the italicized grammar constructions in the following sentences
- •VII. Comment on the sentences
- •VIII. Read and translate the following text into Russian in writing
- •IX. Translate into English
- •X. Render the text “The European Union and the relationships with other countries” using the plan
- •Text 2 The usa and The European Union
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions
- •III. Complete the sentences with suitable words from the box
- •IV. Fill in the blanks with articles if needed
- •V. Fill in the blanks with suitable prepositions
- •Give Russian equivalents for the following words and phrases used in the text
- •Translate the following sentences into Russian in writing
- •Summarize the text using the words and phrases given below
- •Translate into English
- •Supply details to prove the following:
- •XI. Meet as one group. One of you should lead the meeting. Argue for or against the following debating themes:
- •XII. Study the text in several groups and comment on the following statement:
- •Text 3 Argentina in a Fix
- •Text-study
- •I. Learn the following words
- •II. Answer the questions:
- •III. Complete the sentences with suitable words from the box
- •IV. Give Russian equivalents for the following words and phrases used in the text
- •V. Translate the following sentences from the text into Russian in writing
- •VI. Summarise the text, using the words and phrases given below
- •VII. Translate the sentences from English into Russian paying attention to participles and Complex Object with the Infinitive
- •VIII. Translate into English
- •Text 4 The European Union and Japan
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions
- •III. Complete the sentences with suitable words from the box
- •IV. Give Russian equivalents for the following words and phrases used in the text
- •V. Translate the following sentences from English into Russian in writing
- •VI. Fill in the blanks with suitable prepositions
- •VII. Fill in the blanks with articles if needed
- •VIII. Summarise the text, using the words and phrases given below
- •IX. Translate into English
- •X. Supply details to prove the following
- •XI. Comment on the following statements from the text
- •XII. Work as two groups. Discuss the following
- •Text 5 Switzerland and the Euro
- •Text-study
- •Learn the following words
- •II. Answer the following questions
- •Fill in the blanks with the articles if needed
- •Fill in the blanks with suitable prepositions
- •Give Russian equivalents for the following words and phrases used in the text
- •Translate the following sentences from the text into Russian
- •Summarise the text, using the words and phrases given below
- •Translate the text into English
- •Provide details to prove the following
- •Give a thorough consideration to the possible economic gains of Switzerland's joining the eu
- •Unit 1.5. The Importance of the eu Economic and Social Issues
- •Promoting Integration
- •Text-study
- •Learn the following words
- •Answer the following questions
- •Fill in the blanks with suitable prepositions
- •Fill in the blanks with articles if needed
- •Translate the following sentences into Russian in writing
- •Translate the sentences into English
- •Text 2 Eastern European Securities
- •Text-study
- •Learn the following words
- •Answer the questions
- •Fill in the blanks with the suitable prepositions
- •Insert the articles where necessary
- •Give Russian equivalents for the following words and phrases
- •Translate the following sentences into Russian in writing
- •Summarise the text, using the words and phrases given below
- •Translate the following sentences into English
- •Supply details to prove the following:
- •Work in several groups. Comment on the following statements:
- •Text 3 The problem of Tax Harmonization
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions
- •III. Complete the sentences with suitable words from the box
- •IV. Fill in the blanks with articles if needed
- •V. Fill in the blanks with suitable prepositions
- •VI. Give Russian equivalents for the following words and phrases used in the text
- •VII. Translate into Russian the following sentences from the text
- •VIII. Summarise the article, using the words and phrases given below
- •IX. Translate into English:
- •X. Study the text in several groups. Discuss the following statements:
- •XI. Meet as one group. One of you should lead the meeting. Comment on the following statement:
- •Text 4 Customs Duties and vat in Europe
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions:
- •III. Complete the sentences with suitable words from the box
- •IV. Give Russian equivalents for the following words and phrases used in the text:
- •V. Open the brackets using the suitable modal verbs (must, should, have to, can’t)
- •VI.Complete the sentences choosing the suitable verbal (Infinitive or Gerund) from the brackets
- •VII. Summarise the text, using the words and phrases given below
- •VIII. Translate into English
- •IX. Meet as one group. One of you should lead the meeting. Supply details to prove the following
- •X. Work as two groups. Discuss the following statements
- •Unit 1.6. The European Central Bank Text 1 The European Bank Supervision
- •Text-study
- •Learn the following words
- •Answer the following questions
- •Complete the sentences with suitable words and word combinations from the box
- •Translate into English
- •Fill in the blanks in the text with suitable prepositions
- •Insert the articles where necessary
- •Translate the following passage into Russian
- •Explain the italicized grammar constructions in the following sentences
- •Comment on the following phrases
- •Summarise the article, using the words and phrases given below:
- •Work as one group. Speak about the importance of the single currency for the bank supervision reform in Europe
- •Study the text in groups.Argue for or against the following:
- •Text 2 European Bank’s Monetary Policy
- •Text-study
- •Learn the following words
- •Answer the following questions
- •Fill in the blanks with articles if needed
- •Fill in the blanks with suitable prepositions
- •Explain the italicized grammar constructions in the following sentences
- •Translate the text from English into Russian in writing
- •Translate the text into English
- •Explain the meaning of the following statements:
- •Work as one group. Dwell upon eurocrats' position in regard to the Basle-2 framework Text 3 Does Euro Prove Top Currency?
- •Text-study
- •Learn the following words
- •Answer the following questions:
- •Translate the following sentences into Russian, explain the italicized grammar constructions:
- •Fill in the blanks with the articles if needed:
- •Summarise the text, using the words and phrases given below:
- •Translate into English:
- •Text 4 The ecb’s Credibility
- •Text-study
- •Learn the following words
- •Answer the following questions
- •Fill in the blanks with articles if needed
- •Explain the italicized grammar constructions in the following sentences
- •Translate the text into English:
- •Revision of Chapter 1 Test Put the verbs in brackets in the correct form
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions:
- •III. Translate into English:
- •IV. Paraphrase the sentences using Gerund with the preposition
- •VI. Give the Russian equivalents for the English words and expressions:
- •VII. Sum up what the text says about
- •VIII. Translate the text of the Certificate of Incorporation into Russian in writing Text 2 Forms of Businesses in the usa.
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions:
- •III. Sum up what the text says about:
- •IV. Translate into English:
- •V. Translate into Russian:
- •VI. Complete the following sentences from the text and translate them into Russian:
- •VII. Substitute the attributive clauses by participial constructions (Participle II)
- •VIII. Translate the sentences with Complex Object
- •IX. Work in several groups. Compare two previous texts on the following types of business in the uk and the usa and their incorporation requirements:
- •Unit 2.2. The staff of a company
- •Text 1.
- •Directors and Managers
- •Read and translate the following text
- •Text-study
- •I. Learn the following words.
- •II. Answer the following questions:
- •III. Translate into Russian:
- •IV. Sum up what the text says about:
- •V. Complete the following sentences as in the text:
- •VI. Translate into Russian:
- •VII. Translate into English
- •VIII. Meet as one group. One of you should lead the meeting
- •IX. Role-Play
- •Text 2 Leadership
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions
- •III. Complete the sentences with the correct word
- •IV. Read some of the letters that were written after the selection interviews. Be ready to write the necessary letters of your own
- •Put the verbs in brackets in the correct form
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions :
- •III. Translate into English:
- •IV. Comprise critical components of your marketing plan.
- •V. Give Russian equivalents to the following:
- •VI. Fill in the blanks with suitable prepositions
- •VII. Fill in the blanks with articles if needed
- •VIII. Read the text about securities. Write a suitable word to fill each of the gaps
- •IX. A businessman gives his partner advice on his investments in a number of ways. Perhaps the most obvious is when he uses the verb “advise”:
- •X. You meet a friend who has some money to invest. Give him some advice. Use the phrases listed in the tasks above
- •Unit 3.2. Brands and Advertising
- •Brand Names
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions
- •III. Translate from Russian into English:
- •IV. Fill in the blanks with suitable prepositions
- •V. Fill in the blanks with articles if needed
- •VI. Complete the sentences with the present simple or the present continuous forms of the verbs in brackets
- •VIII. Endorsement is а commonly used advertising technique, in which а person - often famous - speaks оn behalf of а product
- •In each case, do уоu think the right person was chosen to endorse the product? Present your findings to the group
- •IX. Work as one group. One of you should lead the meeting. Discuss the following questions:
- •X. Analysing advertisements
- •Text 2 Advertising
- •Text study
- •Learn the following words
- •II Answer the following questions:
- •III Find in the text the English equivalents of the following phrases:
- •IV. Analyze the Participle forms used in the text
- •V. Translate the following word-combinations into English in writing. Use a dictionary to help you
- •VI. Work as one group. Discuss the following questions
- •VII. Work in several groups. Sum up the information you have received from the Unit 3.2. Unit 3.3. Investment in Marketing
- •Text 1 From Investment Boom to Bust
- •Text-study
- •I. Learn the following words:
- •II. Answer the following questions:
- •III. Complete the following sentences with the words from the box:
- •IV. Give Russian equivalents for the following words and phrases used in the text:
- •V. Translate the following text into Russian in writing:
- •VI. Summarise the text, using the words and phrases given below:
- •VII. Translate into English:
- •VIII. Meet as one group. Supply details to prove the following assumptions:
- •IX. Working as one group, comment on the following statement from the text:
- •X. Work in several groups. Argue for or against the following statement made in the text:
- •Venture Capital
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions:
- •III. Complete the following sentences with the words from the box:
- •IV. Give Russian equivalents for the following words and phrases used in the text:
- •V. Translate the following sentences into Russian in writing:
- •VI. Summarise the text using the words and phrases given below:
- •VII. Translate into English:
- •VIII. Work as one group. Supply details to prove the following:
- •IX. Work as several groups. Comment on the following statements:
- •Revision of chapter 3 Test Put the verbs in brackets in the correct form
- •Text-study
- •I. Learn the following words
- •II. Answer the following questions:
- •III. Complete the letter as in the text:
- •IV. Write a similar complete letter changing:
- •Text-study
- •I. Learn the following words and their definitions:
- •Read and translate the sample of the contract
- •VII. Answer the following questions
- •IX. Read the text and say in what cases a binding contract does not exist
- •Interpretation of Contracts
- •XI. Look through the text “Interpretation of Contracts”
- •Text 2 Prices and Terms of Delivery
- •Text-study
- •Learn the following words
- •III. Say what the following means:
- •VI. Work as one group. Give the examples of terms of delivery in foreign business transactions Text 3 Terms of Payment
- •Text-study
- •I. Learn the following words
- •II. Translate into Russian:
- •III. Answer the following questions:
- •IV. Translate from Russian into English:
- •V.Translate the following part of contract into Russian and answer the questions:
- •VI. Work as one group. Decide which type of contract is characterized by the following descriptions:
- •VII. Which word –combination is odd in the following list?
- •VIII. Put the following sentences into the Passive Voice form
- •Text 4 The Main Characteristics of the Contract of Sale
- •Text-study
- •Learn the following words
- •Answer the following questions
- •III. Translate the following phrases into English. Use a dictionary to help you.
- •IV. After translating the phrases compose all types of questions of the previous task
- •V. Translate the following word combinations into English:
- •VI. Make up sentences using Subjunctive Mood:
- •VII. Translate the following sentences using Subjunctive Mood:
- •VIII. Complete the following sentences:
- •IX. Make up sentences with the following phrases:
- •Revision of Chapter 4 Test Put the verbs in brackets in the correct form
- •Business vocabulary
- •Appendices
- •Appendix 1 European Monetary Union: Operating Monetary Policy
- •Instrument frameworks
- •Appendix 2 Core Principles for Effective Banking Supervision
- •Appendix 3 America's Housing Market
- •The Business Cycle Lives Again
- •Wages in Recession
- •The Relations of the eu with the imf
- •Appendix 4 Commercial Activities and Types of Contracts
- •Заключение
- •Литература
- •Электронные источники
- •344002, Г. Ростов-на-Дону, пр. Буденновский, 20
Appendix 2 Core Principles for Effective Banking Supervision
Following is the press statement of the Basle Committee on Banking Supervision of the Bank for International Settlements marking the release of the "Core Principles for Effective Banking Supervision." The press statement, released on September 22, 2009, outlines the work of the committee and lists 25 principles of effective supervision. The full 46-page text of the Core Principles is available on the Bank for International Settlements Internet site at http://www.bis.org/publ
The Basle Committee on Banking Supervision, with the endorsement of the central bank Governors of the Group of Ten countries, is today releasing the Basle Core Principles for Effective Banking Supervision. This document, which is a revised version of a consultative paper released in April 1997, establishes a set of twenty-five basic Principles which the Basle Committee believes must be in place for a supervisory system to be effective.
The Basle Core Principles have been drawn up by the Basle Committee in close collaboration with the supervisory authorities in fifteen emerging market countries and have benefited from broad consultation with many other supervisory authorities throughout the world.
The Principles represent the basic elements of an effective supervisory system. They are comprehensive in their coverage, addressing the preconditions for effective banking supervision, licensing and structure, prudential regulations and requirements, methods of ongoing banking supervision, information requirements, formal powers of supervisors and cross-border banking.
The Basle Core Principles are intended to serve as a basic reference for supervisory and other public authorities worldwide to apply in the supervision of all the banks within their jurisdictions. Supervisory authorities throughout the world will be invited to endorse the Core Principles. Endorsement will include an undertaking to review current supervisory arrangements against the Principles. The speed with which changes can be introduced will vary, depending on whether the supervisory authorities already possess the necessary statutory powers. Where legislative changes are required, national legislators are requested to give urgent consideration to the changes necessary to ensure that the Principles can be applied in all material respects.
1.The Basle Committee on Banking Supervision is a Committee of banking supervisory authorities which was established by the central bank Governors of the Group of Ten countries in 1975. It consists of senior representatives of bank supervisory authorities and central banks from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Sweden, Switzerland, the United Kingdom and the United States. It usually meets at the Bank for International Settlements in Basle where its permanent Secretariat is located.
2.The Basle Committee has been working to improve banking supervision at the international level for many years, both directly and through its many contacts with banking supervisors in every part of the world. In the last year and a half, it has been examining how best to expand its efforts aimed at strengthening prudential supervision in all countries by building on its relationships with countries outside the G-10 as well as on its earlier work to enhance prudential supervision in its member countries. In April 1997 the Committee released two documents:
a draft comprehensive set of Core Principles for effective banking supervision (The Basle Core Principles); and,
a Compendium (to be updated periodically) of the existing Basle Committee recommendations, guidelines and standards most of which are cross-referenced in the Core Principles document.
Both documents, with the endorsement of the G-10 central bank Governors, were submitted to the G-7 and G-10 Finance Ministers in preparation for the Denver Summit in the hope that they would provide a useful mechanism for strengthening financial stability in all countries. They were welcomed by Ministers at the Summit and the Committee was encouraged to continue its work.
3. The document now being issued is a revised version of the April 1997 document. There are still twenty-five Principles and only a few contain changes of substance. Other changes to the document are mostly textual in nature.
4. In developing the Principles, the Basle Committee has worked closely with non-G-10 supervisory authorities. The document has been prepared in a group containing representatives from the Basle Committee and from Chile, China, the Czech Republic, Hong Kong, Mexico, Russia and Thailand. Nine other countries (Argentina, Brazil, Hungary, India, Indonesia, Korea, Malaysia, Poland and Singapore) were also closely associated with the work. The drafting of the Principles benefited moreover from broad consultation with a larger group of individual supervisors, both directly and through the regional supervisory groups, as well as with the International Monetary Fund and World Bank.
5. The document calls on national agencies to apply the Principles in the supervision of all banking organizations within their jurisdictions. The Principles are minimum requirements and in many cases may need to be supplemented by other measures designed to address particular conditions and risks in the financial systems of individual countries.
6. The Basle Core Principles are intended to serve as a basic reference for supervisory and other public authorities in all countries and internationally. It will be for national supervisory authorities, many of which are actively seeking to strengthen their current supervisory regime, to use the attached document to review their existing supervisory arrangements and to initiate a programme designed to address any deficiencies as quickly as is practical within their legal authority.
7. The Principles have been designed to be verifiable by supervisors, regional supervisory groups, and the market at large. The Basle Committee will play a role, together with other interested organizations, in monitoring progress made by individual countries in implementing the Principles. It is suggested that the IMF, the World Bank and other interested organizations use the Principles in assisting individual countries to strengthen their supervisory arrangements in connection with their work aimed at promoting overall macroeconomic and financial stability.
8. Supervisory authorities throughout the world are encouraged to endorse the Basle Core Principles. The members of the Basle Committee and the sixteen other banking supervisory agencies that have participated in their drafting all agree with the content of the document.
9. The Basle Committee believes that achieving consistency with the Core Principles by every country will be a significant step in the process of improving financial stability domestically and internationally. The speed with which this objective will be achieved will vary. In many countries, substantive changes in the legislative framework and in the powers of supervisors will be necessary because many supervisory authorities do not at present have the statutory authority to implement all of the Principles. In such cases, the Basle Committee believes it is essential that national legislators give urgent consideration to the changes necessary to ensure that the Principles can be applied in all material respects. The need for new legislation will be taken into account by the Basle Committee in monitoring progress towards implementation.
10. The Basle Committee will continue to pursue its standard-setting activities in key risk areas and in key elements of banking supervision as it has done in documents such as those reproduced in the Compendium. The Basle Core Principles will serve as a reference point for future work to be done by the Committee and, where appropriate, in cooperation with non-G-10 supervisors and their regional groups. The Committee stands ready to encourage work at the national level to implement the Principles in conjunction with other supervisory bodies and interested parties. Finally, the Committee is committed to strengthening its interaction with supervisors from non-G-10 countries and intensifying its considerable investment in technical assistance and training.
11. The twenty-five Core Principles are set out below.
Preconditions for Effective Banking Supervision
1. An effective system of banking supervision will have clear responsibilities and objectives for each agency involved in the supervision of banking organizations. Each such agency should possess operational independence and adequate resources. A suitable legal framework for banking supervision is also necessary, including provisions relating to authorization of banking organizations and their ongoing supervision; powers to address compliance with laws as well as safety and soundness concerns; and legal protection for supervisors. Arrangements for sharing information between supervisors and protecting the confidentiality of such information should be in place.
Licensing and Structure
2. The permissible activities of institutions that are licensed and subject to supervision as banks must be clearly defined, and the use of the word "bank" in names should be controlled as far as possible.
3. The licensing authority must have the right to set criteria and reject applications for establishments that do not meet the standards set. The licensing process, at a minimum, should consist of an assessment of the banking organization’s ownership structure, directors and senior management, its operating plan and internal controls, and its projected financial condition, including its capital base; where the proposed owner or parent organization is a foreign bank, the prior consent of its home country supervisor should be obtained.
4. Banking supervisors must have the authority to review and reject any proposals to transfer significant ownership or controlling interests in existing banks to other parties.
5. Banking supervisors must have the authority to establish criteria for reviewing major acquisitions or investments by a bank and ensuring that corporate affiliations or structures do not expose the bank to undue risks or hinder effective supervision.
Prudential Regulations and Requirements
6. Banking supervisors must set prudent and appropriate minimum capital adequacy requirements for all banks. Such requirements should reflect the risks that the banks undertake, and must define the components of capital, bearing in mind their ability to absorb losses. At least for internationally active banks, these requirements must not be less than those established in the Basle Capital Accord and its amendments.
7. An essential part of any supervisory system is the evaluation of a bank's policies, practices and procedures related to the granting of loans and making of investments and the ongoing management of the loan and investment portfolios.
8. Banking supervisors must be satisfied that banks establish and adhere to adequate policies, practices and procedures for evaluating the quality of assets and the adequacy of loan loss provisions and loan loss reserves.
9. Banking supervisors must be satisfied that banks have management information systems that enable management to identify concentrations within the portfolio and supervisors must set prudential limits to restrict bank exposures to single borrowers or groups of related borrowers.
10. In order to prevent abuses arising from connected lending, banking supervisors must have in place requirements that banks lend to related companies and individuals on an arm's-length basis, that such extensions of credit are effectively monitored, and that other appropriate steps are taken to control or mitigate the risks.
11. Banking supervisors must be satisfied that banks have adequate policies and procedures for identifying, monitoring and controlling country risk and transfer risk in their international lending and investment activities, and for maintaining appropriate reserves against such risks.
12. Banking supervisors must be satisfied that banks have in place systems that accurately measure, monitor and adequately control market risks; supervisors should have powers to impose specific limits and/or a specific-capital charge on market risk exposures, if warranted.
13. Banking supervisors must be satisfied that banks have in place a comprehensive risk management process (including appropriate board and senior management oversight) to identify, measure, monitor and control all other material risks and, where appropriate, to hold capital against these risks.
14. Banking supervisors must determine that banks have in place internal controls that are adequate for the nature and scale of their business. These should include clear arrangements for delegating authority and responsibility; separation of the functions that involve committing the bank, paying away its funds, and accounting for its assets and liabilities; reconciliation of these processes; safeguarding its assets; and appropriate independent internal or external audit and compliance functions to test adherence to these controls as well as applicable laws and regulations.
15. Banking supervisors must determine that banks have adequate policies, practices and procedures in place, including strict "know-your-customer" rules that promote high ethical and professional standards in the financial sector and prevent the bank being used, intentionally or unintentionally, by criminal elements.
16. An effective banking supervisory system should consist of some form of both on-site and off-site supervision.
17. Banking supervisors must have regular contact with bank management and thorough understanding of the institution's operations.
18. Banking supervisors must have a means of collecting, reviewing and analyzing prudential reports and statistical returns from banks on a solo and consolidated basis.
19. Banking supervisors must have a means of independent validation of supervisory information either through on-site examinations or use of external auditors.
20. An essential element of banking supervision is the ability of the supervisors to supervise the banking group on a consolidated basis.
21. Banking supervisors must be satisfied that each bank maintains adequate records drawn up in accordance with consistent accounting policies and practices that enable the supervisor to obtain a true and fair view of the financial condition of the bank and the profitability of its business, and that the bank publishes on a regular basis financial statements that fairly reflect its condition.
22. Banking supervisors must have at their disposal adequate supervisory measures to bring about timely corrective action when banks fail to meet prudential requirements (such as minimum capital adequacy ratios), when there are regulatory violations, or where depositors are threatened in any other way. In extreme circumstances, this should include the ability to revoke the banking license or recommend its revocation.
23. Banking supervisors must practice global consolidated supervision over their internationally-active banking organizations, adequately monitoring and applying appropriate prudential norms to all aspects of the business conducted by these banking organizations worldwide, primarily at their foreign branches, joint ventures and subsidiaries.
24. A key component of consolidated supervision is establishing contact and information exchange with the various other supervisors involved, primarily host country supervisory authorities.
25. Banking supervisors must require the local operations of foreign banks to be conducted to the same high standards as are required of domestic institutions and must have powers to share information needed by the home country supervisors of those banks for the purpose of carrying out consolidated supervision.
Economic Perspectives
Electronic Journal, Vol. 3, No. 4, August 2009