Submit to Parliament amendments to the banking law to bring the legal framework for banking supervision more in line with international best practice (Basel Core Principles).  The amendments to the banking law shall, as a minimum, and consistent with the Aide-Memoire entitled Revision of Legal Framework for Banking Supervision Amendments to Central Bank and Banking Law dated December 2005: (i) provide limits on large exposures and connected lending, i.e., by eliminating carve-outs for mortgage collateral, and prudential safeguards against connected lending; (ii) grant NBR power to approve and refuse the acquisitions of significant ownership holdings and powers to enforce refusal decisions in cases of non-compliance; (iii) provide NBR with powers to regulate banks corporate governance; (iv) provide NBR with a set of specific corrective measures against unsound banking practices; and (v) provide a framework for NBR to impose reorganization and liquidation measures on banks, whereby the role of the special commissioner is strengthened.
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