A targeted assessment of the Basel Core Principles for Effective Banking Supervision (BCP) was conducted which revealed some improvement since the 2007 assessment. The principles reviewed covered the following risk areas: major acquisitions, capital adequacy, risk management process, credit risks and provisions, exposure to related parties, abuse of financial services, remedial actions and consolidated supervision.
Although the CBR continues to improve its supervisory process and issue recommendations to banks on monitoring and managing risks, it lacks the supervisory framework to support enforcement of those recommendations and that inhibits improvement in BCP compliance. CP-9 on problem assets and provisioning was upgraded to largely compliant but CP-11 on exposure to related parties was downgraded to materially noncompliant.
International Monetary Fund.November 29,2011.Country Report No. 11/336
