Supervisory Issues Research Articles

Detailed Assessment of Observance of Basel Norms in Brazil

The Basel Committee on Banking Supervision (BCBS) is a committee of banking supervisory authorities that was established by the central bank governors of the Group of Ten countries in 1974. It provides a forum for regular cooperation on banking supervisory matters. Its objective is to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide. The Committee also frames guidelines and standards in different areas - some of the better known among them are the international standards on capital adequacy, the Core Principles for Effective Banking Supervision and the Concordat on cross-border banking supervision. This paper shall try to show the extent to which Brazil has followed and implemented the Basel Norms.

Compliance with BSBC Regulations by the Banks in Sri Lanka

The Basel Committee’s Role Most of the global banking and insurance regulations have been initiated or inspired by the work of the Basel Committee on Banking Supervision and its so-called “Basel regulations”. The Basel Committee on Banking Supervision (BCBS) was established in 1974 in response to a period of major disruptions in the international currency and banking markets (1971 collapse of the Bretton Woods Accord, 1973 stock market crash, 1974 oil price shock). BCBS members are drawn from 27 countries which are represented by their central banks and financial regulators. The Committee aims to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide. It achieves this partly through its role as a forum for cooperation and information sharing for national supervisors, and partly by issuing guidelines and standards. The Committee does not have formal supranational authority and its standards do not have legal force. Rather, it is expected that national supervisors incorporate these standards into their regulations, with which regulated institutions then have to comply. Basel regulations are also adopted by non-member BCBS countries that see benefits both in the regulations themselves and also in being associated with conformity with Basel standards. The BCBS actively encourages contact and cooperation between its members and other banking supervisors. Whilst at different stages of implementation, many countries are now applying Basel guidelines. In today’s global business environment, international coordination has become increasingly important. Application of the same standards across countries allows for consistent comparisons by investors and creditors, thereby supporting market confidence. Whilst this can be particularly relevant for banks in emerging markets, the recent sub-prime and sovereign crises have highlighted the dependence of some of the largest industrialised economies on their banking systems and thus the importance of global coordination.The BCBS is best known for its international standards on capital adequacy which have evolved from Basel I, issued in 1988, through Basel II issued in 2004, to its latest enhancements issued in 2010, commonly called “Basel III”. Full compliance with Basel III is required by 1 January 2019.

Implications and Challenges of Basel II Implementation in the Nigerian Banking System

Globalisation necessitates drastic changes in the banking sector across countries. The regulation of banking in the developed industrial countries has increasingly focused on attaining financial stability. The Basel Committee on Banking Supervision provides a platform for regular cooperation on banking supervisory matters. Its objective is to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide. Basel I focus more on credit risks, not on operational risks, by establishing a direct link between capital of a bank and its credit risk. The risk identified by Basel I does not express the multiple risks banks can be faced. Basel II addresses the gap by establishing rigorous risk and capital management requirements designed to ensure that a bank maintains capital reserves appropriate to its risk exposures. The Nigerian financial sector has performed well in Basel I implementation. Nigeria is set to implement the Basel II to ensure that better risk management is adopted in the nation’s banking system. The study examines Basel II Accord implementation in Nigeria, explores its implications for the Nigeria banking system and issues with the Accord, and highlights recommendations for implementation of the Accord in Nigeria.

Supervising the supervisor: The use of live music and identification of parallel processes

This article describes a music therapy professor's and PhD student's experiences as “supervisor–supervisee” within the context of the teaching apprenticeship training program at Temple University. A brief overview on the use of live music-making in supervision is offered along with relevant autobiographical information and examples of how live music-making was used to address supervisory issues. The authors identify parallel processes that emerged between the supervisee and her students, and the supervisee and her supervisor. The authors conclude that the practice of live music-making in supervisory contexts is beneficial on many levels. They hope that this publication will expand the ways in which practitioners and supervisors think about the roles of live music and parallel processes within supervisory contexts and that this will translate into supervisory practices.

Supervision and Self-Disclosure: Modes of Supervisory Interaction

A conceptual framework is presented for thinking about supervisory issues raised by candidate self-disclosure. The process of dealing with self-disclosure in supervision brings into bold relief certain dynamics that operate in all supervisory encounters. In responding to these and other tensions stirred by analyst self-disclosure, the supervisory dyad moves in and out of various configurations, or "modes of supervisory interaction." Why these dynamics are intensified when the focus of supervision is on an instance of candidate self-disclosure is explored. To illustrate these ideas, a supervisory hour that dealt with the issue of self-disclosure is presented. A nonjudgmental awareness of the various modes of supervisory interaction enriches the supervisory process.

Supervisory issues: lessons to learn from a home birth

This is a reflective article exploring the supervisory issues surrounding a planned home birth through use of a case study. Issues from the case study, such as decision making and record keeping, are highlighted and analysed and recommendations for practice are included.

A Day in the Life of a College Student Leader (review)

Reviewed by: A Day in the Life of a College Student Leader Julie E. Owen A Day in the Life of a College Student Leader. Sarah M. MarshallAnne M. Hornak. Sterling, VA: Stylus Publishing, 2008, 211 pages, $24.95 (softcover) Politics. Divided loyalties. Ethical dilemmas. Peer Conflicts. Supervisory Issues. These are just a few of the complexities student leaders must navigate in their daily lives on college campuses. In order to better prepare students to constructively engage in such experiences, Sarah Marshall and Anne Hornak’s book A Day in the Life of a College Student Leader offers a litany of case studies designed to generate meaningful dialogue and critical analysis of realistic campus-based student experiences with leadership. Informed by interviews with over one-hundred undergraduate student leaders and eleven student affairs administrators about real-life leadership dilemmas, these case studies reflect compelling contemporary issues on college campuses and offer provocative questions for reflection and discussion. A Day in the Life was designed for use by faculty in classroom-based discussions of leadership as well as for student affairs professionals training student leaders in diverse functional roles and contexts. Citing the need of many educators to craft meaningful learning experiences for students, authors Marshall and Hornak promote case studies as an opportunity for students to actively construct and co-construct knowledge that has direct application to their own experiences. The authors wisely commence the book with detailed suggestions for effective use of case studies by faculty or administrators to inform student leadership training, education, and development. They also recommend facilitators themselves develop an informed perspective about their own campus culture, policies and [End Page 135] procedures, before offering guidance to students about navigating these environments. Finally, and perhaps the most overlooked and challenging recommendation, the authors’ suggest that facilitators strive to “model appropriate behavior for students” and “recognize the influence that your behavior has on the impressionable minds of students” (p. 5). Chapter 1 offers guidance to how to use cases for writing assignments, role plays, large group discussions, small break-out groups, and one-on-one conversations. The authors detail ways cases may be utilized in one-time training or on an on-going basis, such as at the beginning of each meeting of a particular student group. In chapter 2, the authors make a strong case for incorporating student development theory in case analysis. They explain: “The theories associated with college students and their development give us the scaffolding to explain these behaviors as we train leaders and develop programs to facilitate their success” (p. 7). A detailed example is offered that depicts how a case can be discussed in the absence of student development theory, and then demonstrates how case analysis and synthesis become more complex when intentionally informed by theories such as Astin’s Theory of Involvement (1984), psychosocial theories, theories of cognitive development, and leadership scholarship. While the book does not enumerate which developmental theories are most appropriate for each case, the authors acknowledge “it is ethically appropriate to ground these discussions in a theoretical framework balanced with the appreciation that all students are individuals” (p. 15). The ensuing chapters of the book (chapters 3 through 11) offer a wide variety of cases organized by functional area. Contexts addressed include: residence life, student government, Greek life, minority/underrepresented groups, orientation/welcome week, activities/programming board, honorary/academic/professional associations, service learning and community engagement, and general leadership cases. Cases presented are realistic across multiple types of institutions, and indeed were informed by interviews at a diverse array of schools. In addition, while some cases focus on just one functional area (such as residence life or orientation) others span multiple areas and address campus wide inputs and consequences. Cases also vary in length and amount of contextual detail provided, making them suitable for a wide variety of training and classroom environments. A helpful chart is provided as part of the book’s front matter that details which cases address particular dilemma areas for student leaders. The book concludes with a chapter of advice for student leaders gleaned as part of the authors’ interviews with experienced student leaders. This volume clearly addresses a gap in the...

Financial Sector Committee Governance in the European Union

This paper examines the working of the ‘Lamfalussy committees’ in the banking and the securities sectors, asking whether these are ‘technical’ committees or ‘parapolitical’ ones. These committees are composed of experts (national civil servants) discussing regulatory and supervisory issues in a technical policy area — financial services. However, the issues discussed have political salience. It is argued that these committees of experts tend to be argument‐based (level 2) and evidence‐based (level 3), even though politics, as opposed to expertise, enter the policy process under specific circumstances. This combination of politics and expertise originates a distinctive type of informal governance.

Bank insolvency and the problem of nonperforming loans

Bank insolvency has been a significant problem in many parts of the world in the last 30 years. There have been waves of bank failures in developed and developing countries, and also in countries with transitional economies. Between 1997 and 2002, banks had to be closed in more than 50 countries. This paper focuses on one particularly important aspect of the cause of bank insolvency: the relationship between nonperforming loans (NPLs) and bank failure. It will consider both the prevention and control of NPLs and in so doing will examine regulatory and supervisory issues as well as initiatives for dealing with impaired assets. The need for an effective bank insolvency law is a crucial factor which is also addressed. The main aim of the paper is to provide some guidance on a framework for developing and transitional economies, many of which are still suffering severe problems with NPLs.

Critical incidents in clinical supervision and in supervisor supervision: Assessing supervisory issues.

Critical incidents in clinical supervision and in supervisor supervision: Assessing supervisory issues.

European Banking Integration: Don’t Put the Cart before the Horse

This paper reviews the progress in European banking integration over the last twenty years, and evaluates the current system of banking supervision and deposit insurance based on ‘home country’ control. The public policy implications to draw from the paper are threefold: First, after a relatively slow start, European banking integration is gaining momentum, in terms of cross‐border flows, market share of foreign banks in several domestic markets, and cross‐border M&As of significant size. If this trend continues, the issue of adequate supervision and safety nets in an integrated European banking market will become even more pressing. Second, although until recently banks have relied mostly on subsidiary structures to go cross‐border, this is changing with the recent creation of the European company statute, which facilitates cross‐border branch banking. A review of the case of the Scandinavian bank, Nordea Bank AB, helps to understand some remaining barriers to integration, and the supervisory issues raised by branch banking. Third, it is argued that the principle of ‘home country’ supervision is unlikely to be adequate in the future for large international banks. Because the closure of an international bank would be likely to have cross‐border spillovers, and because some small European countries might be unable to finance the bail‐out of their very large banks, centralization, or at least Europe‐wide coordination, of the decision to close or bail‐out international banks is needed. This raises the issue of European funding of bail‐out costs, European banking supervision, and European deposit insurance.

Challenges Confronting Community College Deans

ABSTRACT Community college deans and other senior administrators are faced with a variety of issues and challenges that include, but are not limited to, the ever-changing nature of technology, changes in diverse populations, industry training, and job placements. At this level, the frequently identified emergence of leadership and supervision issues have been more than community college deans can address proactively. Various approaches are used to identify such issues and trends in the field. However, this article describes a 3-round Delphi approach to identifying leadership and supervision issues confronting community college deans over a 5-year period in 4 southeastern states: Florida, Maryland, North Carolina, and Virginia. The results of the study produced 48 major issues and 18 categories that have implications for community colleges throughout the nation. 12 of the 48 issues had a mean score of 4 or more points based on the assigned 5-point Likert-type scale. Community college deans, more than ever before, face increasing leadership and supervisory issues that have far-reaching implications not just for community colleges, but for other 2-year postsecondary educational institutions as well.

Spain: Financial Sector Assessment Program: Detailed Assessment of Observance of the IAIS Insurance Core Principles

This paper presents a detailed assessment of the observance of the Insurance Core Principles (ICP) of the International Association of Insurance Supervisors (IAIS) in Spain. The IMF, for their assessment, consulted the review of a self-assessment prepared by the General Directorate of Insurance and Pension Funds (DGSFP), comments from Private Insurance Organization and Supervision Law (LOSSP) and other secondary regulations on the insurance activity, and notes and presentations on several regulatory and supervisory issues. Also, discusses the recommended action plan and authorities’ response to the assessment.

European Banking Integration: Don't put the Cart before the Horse

This paper reviews the progress in European banking integration over the last twenty years, and evaluates the current system of banking supervision and deposit insurance based on home country control. The public policy implications to draw from the paper are threefold: First, after a relatively slow start, European banking integration is gaining momentum, in terms of cross-border flows, market share of foreign banks in several domestic markets, and cross-border M&As of significant size. If this trend continues, the issue of adequate supervision and safety nets in an integrated European banking market will become even more pressing. Second, although until recently banks have relied mostly on subsidiary structures to go cross-border, this is changing with the recent creation of the European company statute, which facilitates cross-border branch banking. A review of the case of the Scandinavian bank, Nordea Bank AB, helps to understand some remaining barriers to integration, and the supervisory issues raised by branch banking. Third, it is argued that the principle of home country supervision is unlikely to be adequate in the future for large international banks. Because the closure of an international bank would be likely to have cross-border spillovers, and because some small European countries might be unable to finance the bail-out of their very large banks, centralization, or at least Europe-wide coordination, of the decision to close or bail-out international banks is needed. This raises the issue of European funding of bail-out costs, European banking supervision, and European deposit insurance.

Central Counterparty Clearing: Constructing a Framework for Evaluation of Risks and Benefits

A Central Counterparty (CCP) is an entity that interposes itself between transacting counterparties – a seller vis-a-vis the original buyer and a buyer vis-avis the original seller – to quarantee execution of the transaction. Thus, the original transacting parties substitute their contractual relationships with each other with contracts with the CCP. Central Counterparty Clearing has become increasingly popular in Europe, not just in derivatives markets, where, due to the high risk involved, it has been common for decades, but also in equities markets. Within the European Union, the main factor motivating the increased sophistication in clearing arrangements is the ongoing process of European economic integration, ie the euro’s introduction, the ongoing organisation of an internal market for financial services and the corresponding objective of creating a pan-European financial infrastructure for payments and securities clearing and settlement. Central counterparty clearing houses exert a broad influence on the functioning of financial markets. They can increase the efficiency and stability of financial markets to the extent that their smooth functioning results in a more efficient use of collateral, lower operating costs and greater liquidity. As market players actively try to achieve economies of scale and scope with mergers and through harmonising their technical processes, they inevitably have had to focus on one of the most fragmented areas in Europe’s securities market infrastructure – clearing and settlement. Because of the importance of its role, a CCP must have sound risk management. The CCP assumes responsibility in the aggregate and reallocates risk among participants. Moreover, if the CCP fails to perform risk management well, it can increase risk in the markets. While the big market players dominate the current CCP market in Europe, it is not only the big players who can benefit from a functioning CCP. With the right structure, a CCP enables small players to stay in the market and makes it possible for issuers in a regional marketplace to achieve market funding. Indeed, this is the 4 tendency currently seen in the newest EU member states – and one of the main arguments against the single European CCP model. Although, the purpose has been to leave CCP questions to market participants, regulatory, oversight and supervisory issues can drive the actions of market participants. Indeed, authorities must sometimes be actively involved in boosting a CCP project to keep their home markets competitive. This may well be the situation faced by the Nordic/Baltic market in the near future. Thus, this paper attempts to give a neutral evaluation of the risks and benefits related to the functionality of CCPs in integrating markets and construct a framework for possible future risk-benefit analysis in a Finnish/Nordic-Baltic clearing and settlement infrastructure that incorporates a CCP solution. This is an updated version of a Bank of Finland working paper (Financial Markets Department 01/04).1

Engaged Supervision to Support Recommended Practices for Young Children with Challenging Behavior

Although in the last 20 years much progress has been made on understanding the challenging behaviors of young children and providing effective prevention and intervention, it is not at all certain that recommended practices have been widely adopted across early care and education programs. In this article, the authors argue that a major impediment to widespread use of recommended practices is a variety of supervisory issues, including the fact that direct service staff members often feel overwhelmed, overworked, and disrespected. To address these issues, the authors offer a set of strategies leading to what they call engaged supervision.

Music therapy supervision

Forinash, M. (Ed.). (2001). Music therapy supervision. Gilsum, NH: Barcelona Publishers. 378 pages. ISBN 1891278-11-8. Music therapy supervision is a collection of papers on music therapy supervision edited by Michele Forinash. The impetus for this book came from discussions Forinash had with her colleague Lisa Summer about supervision and teaching. During those discussions, they identified several dilemmas. These dilemmas, which are identified in Chapter 1, seem relevant for all music therapy supervisors making this book very timely. The remaining chapters are organized into four broad areas of supervision: Part I: Literature, Ethics, and Multicultural Approaches; Part II: Preprofessional Supervision; Part III: Professional Supervision; and Part IV: Institute Supervision. Part One: Literature, Ethics and Multicultural Approaches, begins with a thorough review of the music therapy literature on preprofessional and professional supervision (McClain). This is followed a discussion of ethical issues (Dileo) and multiculturalism (Estrella). When taken together, Part One provides the reader with a succinct description of current supervisory practices, guidelines for ethical decision-making and an overview of multicultural issues that should be addressed in supervision. The chapters in Part One also underscore the need for further research into methods of supervision. While the literature on music therapy supervision is scant, there is even less written about ethical issues and multicultural issues in music therapy supervision. Forinash has done a great service to music therapy supervisors by including chapters on these topics. The supervisory issues identified by Dileo and Estrella are relevant for all levels of music therapy supervision. For the first time, music therapy supervisors can look to writings within the field, rather than turning to related disciplines for guidance and direction with regards to ethics and multiculturalism. The seven chapters in Part Two present various approaches to preprofessional supervision including: group supervision for first time music therapy practicum (Summer); the use of systems analysis in group supervision of practicum students (Hanser); competency-based models of intern supervision (Farnan); student-centered orientations (Thomas); and creative arts group supervision (Shulman-Fagan). Additionally, the developmental stages of internship are described in three different chapters by Feiner, Farnan, and Thomas. Part Two concludes with a rationale and methodology for developing the student's supervisory personality (Stige). The interplay between didactic and experiential methods of supervision is also illustrated (Summer, Thomas, Shulman-Fagan, Stige). It is exciting to see the use of role play, improvisation, imagery and other creative arts in the supervisory process. These authors clearly describe each technique, and provide a rationale for its use. Additionally, many use case material to help the reader understand the impact that each technique has on student learning. All the authors in Part II have a different philosophical/theoretical orientation in regards to supervision. Yet despite this difference, three universal themes can be identified: 1) the role of the competencies in designing fieldwork and internship experiences; 2) the developmental process that students go through as they move from trainee to new professional; and 3) the changing nature of the supervisory relationship over time. Additionally, it is readily apparent that the supervisee's overall learning needs guide each supervisory intervention, regardless of philosophical/theoretical orientation. Professional supervision, that is supervision received after completion of internship and credentialing, has received very little attention in the literature. Part Three: Professional Supervision begins to fill that void. Several approaches are presented for supervising both beginning and experienced clinicians such as peer supervision (Baratta, Bertolami, Hubbard, MacDonald, & Spragg; Austin & Dvorkin), individual supervision (Amir, Lee & Khare, Jahn-Langenberg), group supervision (Langdon, Frohne-Hagemann), and an apprentice-supervisory model (Bruscia). …

Risk‐based regulation in the Financial Services Authority

Regulation imposes both direct and indirect costs. Regulators have to be conscious of these costs and the finite resources available to them. The paper outlines the way in which the Financial Services Authority (FSA) has developed a system of financial supervision under which resources are directed to those issues, firms and consumers which pose the greatest risks or opportunities when judged against its statutory objectives. The application of a risk‐based approach to supervision is effectively required by a number of principles of good regulation enshrined in legislation along with a requirement to undertake cost‐benefit analysis when devising new rules. As well as informing high‐level aims, the paper shows how the risk‐based approach, through the FSA’s planning and budget process and firm specific risk assessments, affects decisions on supervisory issues and resource allocation. It also outlines how the FSA will account to government for its performance.

Conscientious objection 1: legal and ethical issues

With continuing advances in diagnostic testing during the antenatal period, midwives are increasingly being exposed to women who may consider termination of their pregnancy for fetal abnormality. This can challenge the midwife’s personal beliefs and professional responsibilities, and could affect the staffing of maternity units. This first article in a series of two examines the legal and ethical issues surrounding termination of pregnancy and conscientious objection; a second article will address professional and supervisory issues.

Relations of complementarity and supervisory issues to supervisory working alliance: A comparative analysis of two cases.

This study examined the effects of complementary communications and supervisory issues on the formation of working alliance in 2 graduate student supervisor-supervisee dyads, 1 characterized by high alliance and 1 by low alliance, over the first 3 weeks of clinical supervision. A research-informed case study method was used to collect process and outcome data from the participant and rater perspectives. Results provided some support for (a) a sequential order of the themes or issues underlying the professional development of counselor trainees, (b) a higher degree of complementary interaction in the high-alliance dyad than in the low-alliance dyad, and (c) a relation between complementarity and supervision satisfaction level. Implications for future research and practice are discussed relative to the supervision literature.