RBI sets up supervisory colleges for SBI, ICICI
The RBI has for the first time established the ‘Supervisory College’ for cross border supervision of State Bank of India (SBI) and ICICI Bank.
What is the role of “Supervisory College”?
- The main role of the supervisory college, comprising local and international regulators, is to keep lenders aware of the latest global regulations and to evaluate their worthiness for global operations. This concept was suggested by Basel Committee for Banking Supervision (BCBS) October 2010.
- Supervisory college will help in reducing supervisory overlap and filling in supervisory voids for better supervisory co-operation articulated in Basel-2 framework.
Why only for these two banks?
- SBI is the largest bank in the country with maximum foreign officers among Indian banks. ICICI Bank is the largest private sector bank, which also have a considerable presence overseas.
Who are the supervisors for these banks?
SBI to have 9 host country supervisors which are:
- Bangladesh Bank, Central Bank of Bahrain, National Bank of Belgium, Dubai Financial Services Authority, Financial Services Authority (London), Federal Financial Services Authority (BaFin), Bank of Mauritius, Nepal Rastra Bank, and Monetary Authority of Singapore.
ICICI Bank to have 7 host country supervisors which are:
- Central Bank of Bahrain, National Bank of Belgium, Dubai Financial Services Authority, Financial Services Authority (London), BaFin, Bank of Russia and Monetary Authority of Singapore.
Categories: Economy & Banking Current Affairs