mary c nkosi : risk based supervision in malawi speech by mrs mary c nkosi, deputy governor of the reserve bank of malawi, at the official launch of risk based supervision, blantyre, 9 january 2009. * * * the general manager, reserve bank of malawi ; the chairman of bankers association of malawi ; board members of various banks ; chief executives of banks and members of management ; external auditors ; representative of the institute of internal auditors ; representative of society of accountants ; the executive directors - supervision of financial institutions ; corporate services and support services, rbm heads of department from reserve bank of malawi ; officers of bank supervision and supervision of non bank financial institutions ; members of the press ; ladies and gentlemen. accept my warm welcome to this epic occasion and moment in the history of both the reserve bank of malawi and the act of supervision and regulation of the banking industry in malawi. the reserve bank of malawi changes its mode of supervision from the traditional camel based approach to risk based supervision ( rbs ). such changes the world over, have always been clearly marked and remembered as major occasions. authorities such as the federal reserve system of the usa and financial services authority of the united kingdom where much literature and practice on the subject may be drawn had to change at one point in order to improve the way supervision is conducted. the reserve bank of malawi views this course in the same vein : change to make improvements in risk management in banks and supervision of the same by the regulators. risk based supervision entails change of culture in one way or the other because certain things, like risk management can only be done that way now. i will emphasise a few changes that are expected of banks in order to yield and realize full benefits of the risk based supervision initiative. firstly, the role of the board has been clarified and expectations heightened to an extent that the board can not be a peripheral figure of banks any more. through the risk management guidelines, the rbm calls for active board oversight in policy and strategy formulation, review and ensuring that management executes its responsibility or is held accountable. secondly, the governance structure should not impede proper risk management and reporting. where this is the case, it should be addressed as a matter of urgency and priority. thirdly, all risks affecting the bank should be addressed by policy, ( not just major and traditional financial risks ) so that no single risk is over looked. some of you will recall that one of the major findings of the rbs survey which

amando m tetangco, jr : strengthening partnerships for a more resilient banking system remarks by mr amando m tetangco, jr, governor of the central bank of the philippines ( bangko sentral ng pilipinas ), at the thanksgiving dinner hosted by the aig philam savings bank, inc., makati city, 23 november 2006. * * * thank you ched. former central bank governor and now philamlife president and ceo jose cuisia, jr., mr. ridha wirakusumah of aig asia, other officers and staff of the philamlife - aig family, fellow bankers, special guests. good evening! i am glad i am here to witness what you call the gala premier to celebrate the merger of philam savings bank and aig credit card company philippines which gives birth to aig philam savings bank. to us in the banking sector, this strategic move by the philamlife group and aig to consolidate their consumer finance businesses will further strengthen the bank ’ s financial position and boost its competitive edge. ultimately, this should translate to a more efficient and reliable delivery of financial products and services to the public. to central bankers like me who are responsible for keeping the banking sector sound, healthy, and responsive to the needs of the economy, this is welcome news indeed. my former boss, former central bank governor joey cuisia, will attest to this. in fact, it has been the policy of the bangko sentral ng pilipinas to encourage mergers and consolidation …. so that we will have stronger and more globally competitive banks. thus, those keeping track of developments in the banking community will realize that the aig philam savings bank is the latest outcome in a series of mergers that have been taking place as our banks gear up for increasing competition. in this period of global convergence where competition is the norm and banks are measured against rigorous standards, one strategy that enhances the likelihood of survival and sustained viability is to go the way of mergers and consolidation. in this regard, we foresee a scenario of fewer but more financially powerful universal and commercial banks that are better able to compete in a world of more open borders. however, this is not to say that there will be no place in the evolving financial environment for smaller banks such as thrift and rural banks. in fact, smaller specialist banks cover important niche markets that have unique needs ; for instance, consumer trade and