DNB has just published its brochure on Supervisory Themes for the year 2012. On what topics will DNB focus especially this year?
This year we will pay special attention to the restoration of financial buffers and the sustainability of financial institutions’ business models. Also, we will be homing in on improvements in risk management, board effectiveness, integrity and the quality of the supervisory data that institutions report to DNB.
That’s a long list. Will there be any time left for ‘ordinary’ supervision?
The thematic approach is an integrated element of DNB’s supervisory effort. This approach is especially effective in tackling issues or addressing developments that span a large number of supervised institutions and thus merit a more comprehensive approach. A financial institution is not an island. Thematic supervision enables us to compare institutions, to identify outliers, to detect and promote best practices and to gauge the industry-wide effects of macroeconomic developments. Therefore DNB deploys a substantial part of its supervisory capacity towards this thematic approach, as a complement to its supervision of individual institutions.