THE COMMISSION

'Welcome to Banking’

The Banking division is responsible for the regulatory supervision of all registered deposit-takers. It is also required to identify and act upon any circumstances where unauthorised deposit-taking may be taking place.

Banking supervision is co-ordinated and promoted internationally by the Bank for International Settlements, which is based in Basel, Switzerland. One of its key functions is to develop and promote policies and good practice relating to banking regulatory matters; it is therefore a regular source of reference material.

One key concept promoted by BIS has been the concept of consolidated supervision, whereby international banks are supervised across jurisdictions. This necessitates Jersey based supervision managers liaising on a regular basis with counterparts around the world.

The supervision of banks takes two forms; on-site and off-site. The former involves visiting bank operations to assess the risks they face and their effectiveness in managing those risks. There are three types of such examinations:

1. Discovery – to improve our knowledge of an entity, or specific areas of its operations.

2. Focussed – to examine areas that have been identified to be potentially of concern.

3. Themed – industry-wide assessment of specific risks.

In addition to these, meetings are regularly held with entities to discuss performance, plans and issues they face. Off-site supervision involves remote (i.e. from the Commission’s offices) monitoring of risk management and financial strength. Whilst this spans a whole host of activities, some key aspects are:

1. Monitoring of quarterly prudential returns submitted by banks.

2. Assessment of annual financial accounts.

3. Confirmation of Large Exposures (loans that are in excess of 25% of a bank’s capital base).

4. Overseeing resolution of customer complaints.

Working in the Banking Division provides regular exposure to activity in other divisions because banks tend to have more than one type of regulatory licence. This offers the chance to broaden knowledge and makes for interesting and varied work.

The Banking division supplies statistics to the Bank of International Settlements and the Bank of England. This provides the opportunity to work with advanced reporting tools and statistics.

Activities covered provide a diverse range of issues to address day to day. Key skill requirements are:

1. People interaction
2. Written and verbal communication
3. Practical analytical skills
4. Problem solving.

If you would like to find out more about the Banking division please call Mark Sumner on 01534 822117

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