The Palau Financial Services Regulation of the Republic of Palau has enhanced its program for monitoring banking institutions by successfully implementing revised prudential reporting. New standardized prudential reporting forms (i.e. prudential returns) required to be submitted to the PFSR by all licensed banks have been harmonized across the North Pacific jurisdictions, making cross-border comparison of banking sector performance indicators easier and more effective. The new prudential returns also enable the PFSR to collect monetary statistics and information used to evaluate trends in local access to, and use of, financial services. From this newly implemented regulatory reporting program, the PFSR has further improved its quarterly assessment of all banking institutions and the local banking sector overall. Banking sector reports generated by the PFSR are available online. The PFSR would like to take this opportunity to thank all licensed banks and the respective bank officials involved for their cooperation and valuable input towards making implementation of this new reporting program a success.

The initiative resulted from the first regional banking supervisory workshop held for North Pacific jurisdictions, which was hosted by Palau last July. This was the first time in the history of the PFSR for a regional workshop to be held specifically for North Pacific members of the Pacific Financial Technical Assistance Centre (PFTAC) and the Association of Financial Supervisors from Pacific Countries (AFSPC). Bank supervisory officials from the Federated States of Micronesia and the Republic of the Marshall Islands attended the workshops and all three North Pacific banking jurisdictions, including Palau, agreed to implement the new regulatory reporting format.

Before this year, North Pacific jurisdictions utilized different forms for the collection of prudential information from banks operating within their respective borders, often prohibiting or restricting adequate comparisons regionally. Now that all jurisdictions will be utilizing similar forms, information sharing at the aggregate industry level will be greatly enhanced, thus improving the ability to address supervisory concerns at the regional level.

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