Supervisory Regime

    The National Bank supervises and regulates commercial banks in compliance with the following principles of risk-based supervision:


    • Concentrating on material risks. Focusing on the risks in proportion to their materiality, concentrating on risks that are the most substantial threat to the stability of the financial sector or the safeguarding of depositors, creditors and investors (in the order as required by law);
    • Future-oriented approach. Identifying threats and problems of the financial sector at an early stage and timely use of appropriate corrective measures to eliminate them;
    • Dialogue with regulated financial institutions. This allows supervisors to learn about the financial institution's internal culture, strategy and motivation, helps strengthen the internal control mechanisms of the supervisory board and the directorate, and also improves risk management;
    • Coordination of micro and macro-prudential supervision. Making sure the micro-prudential analysis process gives due consideration to the total systemic risks of the financial sector, measures to reduce them, business and credit cycles and other macro-prudential policy issues;
    • Consistency, compliance and compatibility. Ensuring compliance across the requirements for financial institutions, applying uniform requirements and approaches to decision-making processes with regards to institutions of similar characteristics, proportional risk response;
    • Effective use of internal resources. Risk-based supervisory process and principle-based regulation involves focusing on the most efficient use of supervisory resources, while also concentrating on the risks and practical ways of mitigating them, instead of a passive rule-based assessment process.