The Cayman Islands Monetary Authority will undertake a staged implementation of the Basel II Framework for banks licensed in the Cayman Islands.
It is also understood that the Authority plans to issue a high level road map setting out the proposed timetable and implementation options within the coming months.
The Basel II Framework, developed by the Basel Committee on Banking Supervision, is a new global supervisory framework for assessing the capital adequacy of international banks. Most G-10 countries and many other banking supervisors, including those of major international financial services centres, plan to implement the framework over the next few years.
The decision was made by the CIMA Board of Directors 18 July following an impact study conducted with PricewaterhouseCoopers. The survey included consultation with stakeholders in the Cayman banking industry. The Authority plans to phase in such implementation over a number of years in collaboration with the industry.
CIMA’s Acting Managing Director Patrick Bodden said the Authority considers its implementation as beneficial for the jurisdiction.
‘The implementation of the framework is a vital part of the Cayman Islands’ continued commitment both to modern risk based supervision and to meeting internationally accepted and applied supervisory standards. Having the framework in place will enhance our standing and competitiveness as a financial services centre.’