The CBCG’s supervisory function involves activities related to the regulation of credit institutions (banks and branches of foreign banks) and financial service providers (leasing companies, factoring and companies for purchase of receivables, microcredit financial institutions, and credit/guarantee funds), issuing licences and approvals to these entities, and supervising their operations in order to foster and safeguard the security and soundness of the financial system.
The supervision of credit institutions and financial service providers is carried out off-site, on the basis of data, information and reports these institutions are obliged to submit to the CBCG, and on-site, by inspecting business books and other documents of supervised institutions, as well as all participants in the operations who are subject to supervision.
In accordance with the law, the CBCG imposes measures and other obligations to supervised institutions if they act contrary to the regulations or fail to manage their risk exposures in an adequate manner.
The CBCG maintains a registry of loan receivables of individual entities to credit institution and other reporting units as defined by the law or by a CBCG regulation. The Credit Registry should include other data and information necessary for reviewing the overall indebtedness of individual entities acquired by the CBCG under special agreements concluded with the respective entities.
Reporting units and other entities may use the data and information from the Credit Registry under the conditions and in the manner specified in the relevant CBCG regulation.
Moreover, the CBCG has the Financial Consumer Protection Service in place which deals with the protection of users of banking and other financial services.