Supervision Department

SUPERVISORS OF THE FIRST RESORT

The Regulation & Supervision Department (RSD) is responsible to maintain and /or ensure thesafety, soundness and the integrity of the Liberian financial system, in keeping with relevant laws and international standards. Towards this end, the department formulates regulatory and supervisory policies, frameworks and guidelines governing the activities of the financial system; ensures compliance with policies, regulations and guidelines; and conducts Risk-Based Supervision of financial institutions (Bank-Financial Institutions (BFI), and Non-Bank Financial Institutions including Insurance), complemented with an experienced robust off-site surveillance team.

1.     VISION

To become an effective, efficient and dependable regulatory and supervisory arm of the Central Bank of Liberia (CBL), and be supportive in achieving the Bank’s overall objective of financial stability and economic development of Liberia.

2.     MISSION

To promote and maintain a safe and sound financial system through proactive and rigorous regulation and supervision in keeping with the new FIA of 1999 and  international standards and global best practices.

3.   OBJECTIVES

The objectives of the Department are primarily to:

• Ensure the safety and soundness of the financial system;
• Ensure compliance with the FIA and applicable regulations as well as international standards and best practices;
• Adopt and implement strategies for distressed banks resolution, including receivership and liquidation; and
• acilitate the development of an enabling environment that should give rise to a robust financial system

4.  CORE VALUES

• Professionalism and integrity;
• Transparency and accountability;
• Team work and cooperation;
• Confidentiality;
• Critical thinking and objectivity;
• Dependability and creativity;
• Commitment and dedication; and
• Vigilance.

5.  STRATEGIC GOALS

a)     Promote financial stability through effective licensing, supervision and surveillance of financial institutions  in line with international standards and global best practices;

b)     Promote consistency, accountability and transparency in the regulation and supervision of the financial system as well as foster competition and regulatory objectivity;

c)     Promote sound risk management practices, adequate disclosure and good corporate governance in the financial system;

d)     Ensure compliance with banking laws and regulations, as well as other national laws by licensed financial institutions;

e)     Foster confidence in, and promote public understanding of, the financial system;

f)       Maintain effective liaison with other regulators on the local, regional and international arena to minimize regulatory arbitrage and/or gaps;

g)     Promote capacity building and skills retention befitting of a competent supervisory authority and in line with the Bank’s quest to be the employer of first choice; and

h)   Support the Bank’s objective of promoting economic development through financial inclusion and facilitating effective financial intermediation.

6.     RATIONALE OF THE REGULATION & SUPERVISION DEPARTMENT ORGANOGRAM

The rationale of the structure of the department is to ensure an efficient functioning of the Department, and achieve maximum productivity of its staff and define the basis for staff promotion and development. The Department’s activities are currently being carried out through three sections: Regulation & Policy Section (RPS), Supervision & Surveillance Section (SSS) and Insurance Section (IS).

7.     STAFFING

The department is staffed with professional, competent, and experience personalities who continue to exert regulatory and supervisory proficiency in ensuring a safe and sound financial system.The Department’s activities are currently being carried out through three sections: Regulation & Policy Section (RPS), Supervision & Surveillance Section (SSS) and Insurance Section (IS). Each of the first two sections has sub-units with specific responsibilities. The RPS and SSS are jointly responsible for the regulation and supervision of other non-bank financial institutions (excluding the insurance companies) within their respective purviews.

8.     SUPERVISORY TOOLS &FINANCIAL INFRASTRUCTURE

The department conducts Risk-Based Supervision of all its financial institutionsin order to assess, identify, mitigate and control risks; requires all Financial Institutions to report its financials in line with International Financial Reporting System standards (IFRS) for transparency and comparability; requests stress testing and micro-prudential analysis on the financial stability of the financial sector, amongst other.

The department currently hosts the Collateral Registry and the Credit Reference Systems which continues to improve the operating environment, the performance of the financial sector and access to finance.