The BCCL supervisory approach is primarily risk-based and in line with international best practices.

The BCCL conducts ongoing supervision through both Offsite and Onsite Supervision on institutions subject to its oversight.

Offsite Supervision performs an on-going periodic monitoring of the status of supervised institutions, encompassing the evolution of the financial situation and prudential ratios. It also utilizes qualitative information to evaluate the conditions of supervised institutions, taking into account aspects related to corporate governance and control systems.

Offsite Supervision verifies institutions’ adherence to the specified limits and other regulatory requirements, and the BCCL recommends any applicable fines.

The BCCL conducts field missions at supervised institutions to assess their conditions. Onsite missions include evaluating the quality of assets, estimating corresponding losses, assessing the financial situation and risks faced by the institution, evaluating corporate governance, management, control systems, and information technology, and verifying compliance with laws, BDL circulars, and BCCL circulars.

The BCCL requests the concerned institutions to take corrective action to address any noted non-compliance or observations. Where sanctions are needed, the BCCL refers the matter to the Higher Banking Council with recommendations for suitable administrative measures.