Banking Regulations & Supervision


Banks are prudently regulated and supervised to protect their depositors and to prevent risks to the real economy that may occur through breakdowns in the financial and payments systems. Although non-bank financial institutions may have a smaller systemic impact, there is a wide area of expertise available to ensure that the financial sector remains stable.

AFC supports central banks and regulatory authorities in improving or starting regulation and supervision of the banks, securities, stock markets and insurance companies, capital and pension funds, leasing and factoring companies, microfinance, cooperative, and other financial institutions through legal regulation frameworks, off-site and on-site prudential and non-prudential supervision, early warning systems, lending, solvency and liquidity standards, stress testing, financial and regulatory reporting, monetary and financial statistics, and deposit and investor compensation schemes areas.

In Ukraine, AFC implements EU-funded project which supports the National Bank of Ukraine, the National Commission of Ukraine for State Regulation of Financial Services Market, and the National Commission of Ukraine for Securities in supervision, regulation, and reporting of the banks and non-banking sector.

Under an ADB-funded project, AFC supports Thai authorities proposing and improving the regulatory and supervisory frameworks of 2000 savings cooperatives and credit unions which include both financial sector stability and financial consumer protection objectives.

AFC implemented WB-funded project to improve the capacity of regulation, off-site supervision, and on-site inspection of microfinance sector for staff and inspectors of the Vietnam Banking Supervisory Agency. Moreover, AFC supported the Bank of Laos in developing and implementing an appropriate Management Information System (MIS) and Information and Communication Technology (ICT) infrastructure to supervise microfinance operations and institutions in Lao PDR.

AFC has implemented further projects on financial sector supervision and regulation in Ghana, Nigeria, Tunisia, Jordan, Tajikistan, Ukraine, Vietnam, Thailand, and Lao PDR.