21 Jan 2004

Cook Islands banking industry to make submissions on new regulations

5:02 pm on 21 January 2004

The banking industry in the Cook Islands will face new prudential regulations rather than guidelines if differences can't be ironed out over proposed rules.

The Financial Supervisory Commissioner, Rose Olaso, says they've had one meeting with industry representatives after the FSC sent out three prudential statements to banks for comment on.

They cover licensing requirements, minimum capital requirements and asset quality, incorporating loans.

Ms Olaso says some concern was voiced about the level of information that would be required by the FSC from banks but the industry has until tomorrow to present written submissions.

She says once those have been considered, a further meeting is planned.

"If need be, we will go to our attorney general or legal counsel and we will have these promulgated into regulations but right now, we're using the avenue of prudential statements which is a common approach done by some Pacific Island countries."

The Cook Islands Financial Supervisory Commissioner, Rose Olaso.