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PERMANENT COUNCIL OF THE ORGANIZATION OF AMERICAN STATES
SPECIAL COMMITTEE ON INTER-AMERICAN SUMMITS MANAGEMENT

OEA/Ser.G   CE/GCI-31/95
3 November 1995
Original: Spanish

REPORT OF THE COMMISSION OF LATIN AMERICAN AND CARIBBEAN BANKING SUPERVISORY AND INSPECTION ORGANIZATIONS TO THE SPECIAL COMMITTEE ON INTER-AMERICAN SUMMITS MANAGEMENT


CENTRE FOR LATIN AMERICAN MONETARY STUDIES

Mexico, D.F., October 5, 1995

Mr. Richard Bernal
Chair
Permanent Council of the Organization of American States
Washington, DC

My dear Mr. Bernal:

In your letter dated September 22, 1995, you inquired about the progress being made in carrying out the initiatives of the Summit of the Americas and about plans for their implementation and follow-up. In response to that request, I would like to report that the Commission of Latin American and Caribbean Banking Supervisory and Inspection Organizations is seeking to serve as a high-level forum for the exchange of views on matters within the competence of banking supervisors and to promote cooperation programs in all areas relating to banking supervision and inspection.

Important documents containing proposals for harmonizing standards have been adopted. They comprise statements of and recommendations for common basic principles, which can be adopted by supervisory banking officials in the region as a type of benchmark to direct the efforts of each country in adopting internationally acceptable standards.

The Commission has managed to reduce and even eliminate barriers to communication between its members, thereby making it possible for countries to benefit from one another's experience and progress, but it has mainly shared its technical views in order to harmonize banking supervision activities in the region. A few, examples of these actions are the adoption of proposals on uniform principles for supervising the foreign branches of commercial banks, on minimum norms for evaluating credit assets of financial brokerage institutions, on external bank auditors, on the concentration and diversification of credit risks in banks and economic conglomerates, on deposit insurance, and on consolidated global supervision and cooperation between supervisory organizations.

The importance of standardizing principles of cooperation in the Commission to provide dependable supervision and rules in support of the development and gradual integration of markets led the supervisors of the region to accept the invitation of the Board of Governors of the Federal Reserve system of the United States to hold the first Pan-American conference on banking supervision. Held in August 1995 in Buenos Aires, Argentina, it covered topics related to supervision of problem-ridden institutions, sound supervision to build stable financial markets, communication between banking supervisors and exchange of information, and standards for entry into foreign markets.

With regard to work on money laundering, the matter was discussed at the Second Conference of Legal Advisors on Banking Supervision and Inspection, held in Cuenca, Ecuador, in 1995. Among the participants was the Executive Director of the Caribbean Financial Action Group on Money Laundering. In the conclusions of the meeting, a recommendation was made to the supervisory organizations of the region to update their legislation's regarding prevention, and punishment of this type of activity. Similarly, the Commission's program of activities for 1995-1996 provides for the establishment of a working group to study this question more thoroughly.

Lastly, through its periodical publications, the Commission has disseminated all the materials and information on topics of interest to banking supervision and inspection, including specialized studies done by the Federal Reserve system of the United States, the International Monetary Fund, the World Bank, and the Basel Committee.

I am grateful for having been given this opportunity to familiarize you with our activities and would like to extend my warmest greetings.

Sincerely yours,

Dr. Josť Roberto da Silva
Executive Secretary of the Commission


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