Promoting a safe and stable banking system through effective regulation and supervision

Peter Haenni

• 1 min read
Promoting a safe and stable banking system through effective regulation and supervision
Process map auto generated by the Process Horizon web app

Is the mission of bank regulators to promote a safe, sound, and stable banking system that serves the needs of consumers, businesses, and the broader economy ?

Is this achieved by enforcing regulatory standards, supervising banks, and providing timely and effective responses to emerging risks and crises ?

Is the goal to ensure that banks operate with integrity and in compliance with applicable laws and regulations, and that they contribute to the overall health and prosperity of the communities they serve.

Oversight processes of bank regulators:

  1. Monitor and analyze industry trends and economic indicators
  2. Develop and enforce laws and regulations to ensure safety and soundness of the banking system
  3. Review and approve bank applications for new charters, mergers, and acquisitions
  4. Conduct examinations and inspections of banks to assess compliance with laws and regulations
  5. Collect and analyze data on bank performance, risks, and financial condition
  6. Provide guidance and feedback to banks on areas for improvement
  7. Take enforcement actions against banks that violate laws and regulations

In support of effective risk management, compliance and supervision, it is crucial to have a documented process model in place with visual process maps as a guide to bank management and staff as well as for reference to risk management, compliance and audit functions and last but not least to the bank regulator.

I think bank regulators should put a new regulation in place for the provision of a comprehensive process model documentation of the business critical processes at too big to fail banks. With the proliferation of bots at financial services institutions, this will be a vital requirement.

The ProcessHorizon web tool is a fast-track intuitive SIPOC notation based modeling tool providing instant visual process maps from your end-to-end process model input on three decomposition layers stored in a repository for standard and ad-hoc reporting.

Free trial of the smart web app https://processhorizon.com