WASHINGTON A panel of international regulators says monitoring of Internet banking needs more cooperation from supervisors.
In a report by the Electronic Banking Group, a Basel Committee on Banking Supervision subcommittee chaired by Comptroller of the Currency John D. Hawke Jr., the panel concludes that regulators in different countries must share information if they are to do their jobs well.
Internet banking poses a special challenge for international bank supervisors because it enables banks to extend their customer reach beyond existing national boundaries, Mr. Hawke said. Coordination among supervisors will help ensure effective oversight of electronic banking in a way that does not impede innovation and meets public needs.
The report finds that information-sharing, combined with coordinated supervision of cross-border financial services activities, could make new regulations for the supervision of Internet banking unnecessary.
One of the Electronic Banking Groups next projects will be to develop supervisory guidance for the prudent risk management of e-banking activities, it said in a news release. It has set a December deadline for formulating that guidance.