The Basel-II capital adequacy framework is being implemented in a phased manner with effect from March 2008. The diversification of ownership of banking institutions has been enabled through private shareholding in the public sector banks and competition has been enhanced with the entry of private and foreign entities and foreign capital in the financial sector.
The Central Bank is in that respect striving to constantly promote a compliance framework that ensures the soundness and stability of our financial sector and to promote an effective compliance environment that not only deter problems, but also detect problems at an early stage.