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 Jaime
Caruana, governor of the Bank of Spain and chairman of the Basel
Committee on Banking Supervision, used a speech at the 31st General
Assembly of the Geneva Association, Madrid, 27th-29th May 2004 to
outline his views on the future of risk management and how it will
link in to the supervisory system.
Mr Caruana said:
“Supervisors must ensure that the regulatory system encourages
banks, securities firms, and insurance companies to be capable of
managing their risks today and ready to respond to new challenges
tomorrow. Risk management and the supervisory system cannot and
should not evolve independently of each other. On the contrary,
supervisory agencies and financial services providers are currently
working in tandem to develop a ‘virtuous circle’ in
risk management and supervision.
“Together, we want to ensure that supervision
reflects the best practices being developed by the industry, while
at the same encouraging institutions to improve those practices
constantly.
“Evolution in risk management and the
reform of financial supervision should complement and reinforce
each other, and the progress in each area will be influenced by
the work underway globally to revise accounting guidelines.”
Read the full text of his speech at http://www.bis.org/review/r040528b.pdf
•Date:
3rd June 2004 •Region: W.Europe/World •Type:
Article •Topic: Op.risk
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