Improving Banking Supervisory Mechanisms
In the OIC Member Countries
86
Current level Remarks
What can supervisors do to
measure the true risk?
Systemic Risk and
Macroeconomic
Stability
It needs to be
watched because of
high loan growth
Useful to assess D-SIB's. A metric is necessary to
assess systemic risk
Longer Term Risk and
Capital Planning
Needs to be assessed BASEL III has a static
nature. How much capital
is needed for the next 3
years?
The Internal Capital
Adequacy Assessment
Process (ICAAP) is a must for
better supervision.
Growth, PD and FX scenarios
should be prepared for stress
testing
Deposit Insurance:
Bank run and deposit
withdrawal risk
A generally
important risk factor
To avoid bank run it is
useful
FDIC rates can vary among
based.
Risk based FDIC rates can be
implemented
Macro Prudential
Regulations
A common stress
testing for OIC
member will be
useful
There are some
attempts
A common stress testing
method under common
shocks on Islamic financial
Products could be useful.